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Tech Entrepreneur Ethan Agarwal Launches Primary Bid Against Rep. Ro Khanna Over Wealth Tax

Silicon Valley donors upset with the proposed 5% billionaire levy signal support for the newcomer.

Overview

  • Agarwal, 40, a former tech founder who dropped a brief gubernatorial bid, entered the Democratic primary in California’s 17th District and centered his challenge on the wealth tax fight and a good‑government platform.
  • Y Combinator chief Garry Tan will donate to Agarwal, and venture capitalist Chamath Palihapitiya publicly urged Khanna’s defeat, reflecting organized tech‑industry pushback.
  • Khanna backed a California proposal for a one‑time 5% tax on billionaire wealth that unions are still trying to qualify for the November ballot, while Google co‑founder Sergey Brin and other billionaires are funding counter‑initiatives to nullify it.
  • Following backlash, Khanna tempered his endorsement and is pressing tech leaders and labor to meet this month to seek a compromise on the tax’s structure.
  • Khanna enters the race with nearly $15.5 million on hand and a rising national profile; Agarwal attacks his stock trading disclosures, while Khanna says an independent trust makes the trades and he supports a ban on congressional trading.