Rep. Ro Khanna has accused California Gov. Gavin Newsom of backing away from the state's proposed billionaire wealth tax due to potential retaliation from wealthy political donors. Khanna, a progressive from Silicon Valley, suggested that fear of offending billionaires has made many elected officials reluctant to publicly support Proposition 40, a measure that would impose a one-time 5% tax on the wealth of California billionaires.
"They saw what happened to me," Khanna told POLITICO, referencing a December incident where venture capitalist and prominent Democratic donor Ron Conway allegedly pressured him to retract his support for the proposal. According to Khanna, Conway warned that "these people are ruthless" and would retaliate against him if he supported the tax.
Khanna asserted that this fear of wealthy donors has contributed to many prominent Democrats remaining on the sidelines, even as support for the initiative has grown. The California Democratic Party endorsed the measure recently, and the California Federation of Labor Unions also voted to support Proposition 40, becoming the state's largest labor organization to do so.
Despite this growing momentum, Khanna has encountered difficulty in rallying support from California's top Democratic leaders. Governor Newsom, who could be a potential rival for a 2028 presidential nomination, has been critical of the proposal. Newsom has instead argued that a national wealth tax would be more effective than a state-level initiative.
"I don’t know why he’s taking the side of the billionaires over people who care about Californians getting health care," Khanna said of Newsom's stance.
Khanna has also been working to broaden support for the proposal by organizing meetings between labor leaders, members of California's congressional delegation, and the Congressional Progressive Caucus. While Sen. Bernie Sanders has endorsed the measure, many other national progressives have yet to publicly back Proposition 40. Khanna noted that Rep. Alexandria Ocasio-Cortez has not yet focused on the issue, suggesting it may not be on her immediate radar.
Khanna, who recently defeated a primary challenge, stated that he expects to make a decision regarding a potential White House bid in 2028 around Thanksgiving.