R Khanna wants nationwide fraud investigation after wealth tax firestorm

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California Democrat Rep. Ro Khanna says he has a solution for Silicon Valley elites angered by his embrace of a wealth tax: Tackling fraud.

Over the weekend, Khanna came under fire from some donors and allies in the tech industry after he endorsed a wealth tax. Labor groups in California are trying to add a proposal for a statewide tax on billionaires to the November ballot, prompting some wealthy Californians to warn they will leave the state if it passes and support a primary challenger to Khanna in next year’s elections.

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Khanna’s pitch comes after the California State Auditor released new reports that identified potential fraud in the state. Meanwhile, alleged fraud cases in Minnesota, some leading to indictments first handed down in 2022, have also seen renewed national attention from Republican lawmakers and the Trump administration.

Many who criticized Khanna’s endorsement of a wealth tax cited those instances of fraud as a reason that the tax won’t work.

“If, after audits and zero based budgets, there are revenue gaps, I’d support a wealth tax,” said Chamath Palihapitiya, a prominent tech investor and Trump supporter, in a post to X. “Until then, you and your ilk are just getting more incentives for fraud, voter manipulation and larceny.”

Khanna noted that his new oversight effort is in response to “feedback from constituents in my district and leaders” over his embrace of a wealth tax.

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