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Mark Cuban may be rich, but he still feels the pain of those in the middle class.
The billionaire business mogul has repeatedly warned that the middle class is at risk of getting squeezed from both sides. Here's why he thinks you might face a raw deal as you struggle to keep more cash in your wallet.
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Why Mark Cuban says the middle class is at risk of getting squeezed from both sides
In Cuban's view, Americans are at risk of being squeezed on two sides. Right now, rising costs are pushing down on them from above, and tariffs could make these costs worse.
In addition, Cuban worries about the potential for a coming recession that could lead to widespread layoffs and threaten incomes.
For now, Americans' incomes are hanging in there. In fact, they have surged since 2019, but combined with inflation and rising prices on nearly everything, the extra money may not be worth as much as it used to — especially if a severe recession hits soon.
Tariffs are like a regressive tax on everyday essentials
Cuban says Americans who are not wealthy will bear the brunt of rising costs associated with the tariffs the Trump administration has put in place.
He notes that the poorest Americans are those who do not make enough money to even match the federal standard deduction. In 2026, the standard deduction is $16,100 for single people and $32,200 for those who are married filing jointly.
If tariffs are used to lower income taxes, these folks won't benefit since they do not pay income taxes. On the other hand, the cost of essentials such as food and clothing will likely go up as a result of the tariffs.
As Cuban posted on X, this means the tariffs create a "regressive tax system that punishes those least able to afford rising costs."
Why Cuban says no one is immune — not even his own companies
Today's widespread tariffs could even force Cuban to raise prices in his own companies.
The billionaire recently said his Cost Plus Drugs company might have to hike the cost of its prescription medications.
That is a tough pill for Cuban to swallow, as he formed Cost Plus Drugs with the goal of providing affordable medications with just a 15% markup.
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Economic pain hits small towns the hardest
While tariffs are likely to impact a wide swath of Americans, Cuban says those who live in small towns may be hit the hardest.
In a 2025 Bluesky post, Cuban warned of a "rural red recession." In this scenario, large-scale layoffs in rural areas, budget cuts, and a reduction of government grants and contracts would hit rural communities hard.
The fallout would be severe in rural "red" communities that tend to vote Republican, turning their finances upside-down, according to Cuban.
Consumer protections are quietly disappearing
Cuban has expressed dismay over funding cuts for government organizations. Such reductions could leave Americans underserved and less protected.
For example, the Consumer Financial Protection Bureau's stated mission is to "protect consumers from unfair, deceptive, or abusive practices and take action against companies that break the law." Meanwhile, the IRS enforces tax laws and collects the money that funds government services.
In particular, Cuban says he is worried that reductions in funding for the nation's Society Security program are a "back door way to cut payments."
Where Cuban says tariffs could actually help
Cuban is not completely gloom-and-doom when it comes to what the Trump administration wants to accomplish.
In one recent interview, Cuban emphasized that he is not against all tariffs. For example, he thinks tariffs on China that bring back jobs for steel workers might be beneficial.
But when tariffs apply broadly, they can hurt more than they help, he says.
A dire warning
In summary, Cuban believes bad times are on the horizon for the middle class and everyone else unless the Trump administration reverses today's tariffs.
In a post on Bluesky, Cuban wrote that an economic downturn that creates a "far worse situation than 2008" could be in the cards.
He says this is likely if tariffs remain in place for years and cause inflation, and Department of Government Efficiency (DOGE) cuts to government employment continue.
Obviously, such a nasty recession would make life even tougher for both the middle class and those who are on the lower income end of the spectrum.
Bottom line
In Cuban's view, middle-class America is in a vulnerable position. Costs remain elevated, and tariffs could make them worse. If a recession makes an unwelcome visit, millions could lose their incomes at a time when they cannot afford to face that fate.
Nobody knows if time will prove Cuban right. But just in case it does, now is the time to avoid money mistakes and to build an emergency fund so you can sail through any stormy economic seas that lie ahead.
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