Silicon Valley legend Vinod Khosla has ‘no plans to leave California’ amid billionaire tax uproar—but he has another idea to fix the wealth loophole

Main Idea: Vinod Khosla says he has no plans to leave California over the state’s proposed billionaire wealth tax, but he argues the real fix is federal tax reform that closes loopholes and taxes capital gains like ordinary income.

Key Points:

• Khosla warns that a one-time 5% tax on billionaires could push more wealthy residents out of California and shrink the state’s future tax base.
• He says the measure is a short-term fix that does not solve the deeper problem of how the wealthy are taxed.
• Khosla wants the federal government to end special treatment for capital gains and use the money to cut or remove income taxes for most Americans earning under $100,000.
• He says the tax fight shows a bigger issue: how to fund public services fairly in an AI-driven economy where more income may come from capital than labor.