The executives' discontent stems from Khanna's public defense of the wealth tax, which they fear could drive high-net-worth individuals and their capital out of California. The proposed tax, designed as a one-time levy on extreme wealth, aims to generate revenue for state programs. While the specific mechanics of the tax haven't been finalized, similar proposals often target assets like stocks, bonds, real estate, and other investments exceeding a certain threshold.

Despite the brewing opposition, the effort to oust Khanna faces significant hurdles. Khanna, who gained prominence for his role in advocating for the release of the Epstein files, secured a comfortable re-election victory in 2024. Furthermore, his campaign boasts a substantial war chest of nearly $15 million, presenting a formidable financial barrier for any challenger. He also enjoys strong support from the South Asian community within his district.

The sources, who requested anonymity to discuss private conversations, indicated that the executives are exploring various strategies, including backing a primary challenger in the next election cycle. They are also considering funding independent expenditure committees to run ads highlighting their concerns about Khanna's stance on economic issues.

Khanna has long navigated a delicate balance in representing his Silicon Valley district, simultaneously advocating for the tech industry and aligning with progressive policies championed by figures like Bernie Sanders. His support for the wealth tax appears to be testing the limits of that balancing act.

The situation highlights the growing tension between the tech industry and progressive lawmakers over issues of wealth inequality and taxation. As California grapples with budget challenges, debates over wealth taxes and other progressive revenue-raising measures are likely to intensify, potentially leading to further clashes between tech leaders and politicians like Khanna. The next steps for the executives involved remain unclear, but their actions signal a willingness to engage more directly in political campaigns to protect their economic interests.