Ro Khanna Defies Tech Donors Over Proposed California Wealth Tax

The proposed measure would impose a one-time 5% levy on net worths exceeding $1 billion, potentially raising $90 billion to offset recent state budget cuts. While the policy remains popular with the public, it has drawn sharp opposition from California Governor Gavin Newsom and the state's ultra-wealthy elite. Venture capitalist Peter Thiel and Google co-founder Larry Page have reportedly suggested they might reduce their ties to the state should the tax proceed.

Khanna, a progressive who has long balanced ties to the tech industry with populist economic advocacy, dismissed the threats of billionaire flight. Invoking Franklin D. Roosevelt, the congressman remarked that he would "miss them very much" if they chose to leave. This stance prompted former donors, including Y Combinator CEO Garry Tan, to discuss a potential primary challenge. Tan, known for his aggressive social media campaigns against local progressives, has yet to formalize any bid, though he and other critics have accused the representative of alienating his moderate base.

Defending his position, Khanna argued that a modest tax on extreme wealth is vital for maintaining a functional society. He maintains that innovation is a collective effort supported by public funds and that extreme wealth concentration threatens national stability. Despite the noise from industry leaders, the congressman remains a formidable electoral force in his district, where he has consistently defeated primary challengers by wide margins since 2018.