Indian-American Democratic Congressman Ro Khanna, who represents a part of Silicon Valley, has strongly defended a proposed tax on the ultra-wealthy while dismissing fears that it would drive billionaires like Peter Thiel and Larry Page out of California. In a sharp rebuttal to critics, Khanna mocked the notion that such a tax would stifle innovation in the tech hub.
"I Will Miss Them Very Much": Khanna's Mocking Retort
When confronted with reports that billionaires might leave the state to avoid the proposed levy, Khanna sarcastically echoed a line from President Franklin Roosevelt. "I will miss them very much," he said. The proposal, which is far from becoming law, calls for California residents with a net worth exceeding $1 billion to pay a one-time tax equivalent to 5% of their assets, payable over a five-year period.
Facing backlash for potentially scaring away wealth, Khanna framed the issue as one of fundamental economic fairness. He argued that the extreme concentration of wealth is unsustainable when a majority of Americans struggle with basic costs. "We cannot have a nation with extreme concentration of wealth in a few places but where 70 percent of Americans believe the American dream is dead and healthcare, childcare, housing, education is unaffordable," Khanna stated.
Innovation Ecosystem, Not Low Taxes, Built Silicon Valley
Khanna passionately contested the argument that a wealth tax would kill future innovation, using the example of NVIDIA's founder. "Those saying that we wouldn't have a future NVIDIA in the Bay if this tax goes into effect are glossing over Silicon Valley history," he said.
He detailed that Jensen Huang started NVIDIA in his district because of the deep pool of semiconductor talent, proximity to Stanford University, robust innovation networks, and abundant venture capital. "We have 37 times the VC money as Austin given the innovation ecosystem & Florida isn't even on the map," Khanna added, emphasizing that the region's strengths are unmatched. He concluded that founders are driven by talent and opportunity, not the distant prospect of a minimal tax on vast fortunes.
Reports of Billionaires Exploring Options
The debate was triggered by a New York Times report indicating that some billionaires are indeed looking beyond California's borders. The report stated that Peter Thiel, who owns a home in Hollywood Hills, has explored opening an office for Thiel Capital in another state and is spending more time outside California.
Similarly, Larry Page, Google's co-founder, is also reported to be spending more time outside the state. In a concrete move, three limited liability companies associated with Page filed documents to incorporate in Florida in mid-December, according to state records cited by the NYT.
Despite these reports, Khanna remains steadfast. He warns that the real threat to American competitiveness is not a marginal tax on extreme wealth, but social unrest and political dysfunction born from inequality. His core message is that cultivating talent nationwide is more crucial for long-term innovation than catering to the tax concerns of a few billionaires.
