A group called “Pissed Off at Ro“ has been created to challenge Representative Ro Khanna, a vocal supporter of the California confiscation tax, which has been proposed.
The new group was recently promoted by Garry Tan, CEO of VC firm YCombinator, who has been posting on X how devastating the confiscation tax will be on the venture capital ecosystem, innovation, and the state of California.
Tan stated:
“Some friends of mine who are very upset at Ro Khanna are organizing. When 96% of your campaign funds come out of district, it’s obvious that your loyalties start to lie outside of your district too. But that’s why representative democracy exists. Vote.”
Khanna is the Representative for much of Silicon Valley, the world’s most robust venture ecosystem.
The tax would impose a “one-time” 5% tax on wealthy individuals’ holdings, including unrealized gains. As these gains can go up or down – all the way to zero – it has been widely condemned. The tax is also expected to be retroactive, thus potentially capturing some who plan to leave the state.
Multiple high-net-worth individuals have already fled California to evade the confiscation tax. Others are reportedly considering a move to Florida or Texas, the two states that have benefited the most from California’s dysfunctional political environment. Both of these states have no state income tax. California has the highest in the United States and will no longer benefit from taxing high-income individuals.
While most observers recognize that the confiscation tax will be self-defeating, policymakers like Khanna believe that most individuals affected by it are bluffing and won’t flee California.
