It only took a few months and now leftwing Democrat Rep. Ro Khanna (D-Calif.) is no longer limiting his push for a wealth tax to America’s billionaires. The Silicon Valley Democrat is now advocating annual taxes on Americans with fortunes exceeding $50 million, marking a significant expansion of proposals that critics argue could continue reaching further down the wealth ladder over time.
Khanna highlighted the position Friday in a post on Twitter promoting a Substack essay published the previous day. While he continues to support legislation targeting billionaires, he also endorsed the Ultra-Millionaire Tax Act, which would impose a 2% annual tax on net worth above $50 million and increase the rate to 3% on wealth exceeding $1 billion.
Does anyone think it’s going to just stay there? The shift comes as Democrats have increasingly argued that taxing accumulated wealth—not just income—is necessary because many wealthy Americans hold appreciating assets while reporting relatively modest taxable incomes.
Earlier this year, Khanna co-introduced the Make Billionaires Pay Their Fair Share Act with Sen. Bernie Sanders (I-Vt.). That proposal would impose a 5% annual tax on the net wealth of America’s approximately 938 billionaires, whose combined fortunes are estimated at roughly $8.2 trillion. Supporters estimate the legislation would raise about $4.4 trillion over a decade to fund priorities including $3,000 annual payments for many Americans, higher teacher salaries, lower child care costs, and expanded healthcare spending.
But Khanna has also embraced the broader Ultra-Millionaire Tax Act, extending the concept well beyond billionaires to Americans with net worths beginning at $50 million. The legislation would also seek to prevent avoidance by attributing assets held in certain irrevocable trusts back to the grantor for tax purposes.
Khanna has argued the approach closes what he views as a loophole in the tax code, comparing the proposal to property taxes that homeowners pay regardless of whether they sell their homes. He has also backed a California ballot initiative that would impose a one-time 5% wealth tax on the state’s billionaires to help finance healthcare.
The proposals drew immediate criticism online from Pirate Wires editor-in-chief Mike Solana, who argued the measures amount to far more than a traditional tax.
khanna's 'billionaire wealth tax,' which is not a tax but an asset seizure in which he tallies everything you own, then demands a percentage *on top* of what you're taxed — every single year — is already targeting anyone worth $50 million or more. this ends with your 401k. https://t.co/jt7VtK1j4w pic.twitter.com/IH9vxcBxKG
— Mike Solana (@micsolana) July 3, 2026
Solana argued that requiring Americans to annually value all of their assets before paying an additional percentage on top of existing taxes already reaches anyone worth more than $50 million under the Ultra-Millionaire proposal. He also warned that wealth taxes have historically expanded over time and could eventually reach ordinary Americans’ retirement savings, including 401(k) accounts.
Opponents of wealth taxes have also raised concerns about the difficulty of valuing privately held businesses, artwork and other illiquid assets, the possibility of capital leaving the United States, and constitutional questions surrounding annual taxes on accumulated wealth.
Supporters counter that anti-avoidance provisions, including exit taxes for individuals who renounce U.S. citizenship, along with stronger IRS enforcement, would limit tax avoidance. They also argue predictions of widespread taxpayer flight from higher-tax jurisdictions have often been overstated.
Wealth taxes, which have never worked wherever they have been implemented, have become a recurring feature of progressive Democratic policy proposals in recent years, with similar plans previously championed by Sen. Elizabeth Warren (D-Mass.). Khanna has argued that continued venture capital investment in California demonstrates that higher taxes on wealth can coexist with economic growth.
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