Key Takeaways

• Rep. Ro Khanna and Sen. Ted Cruz clashed over a proposed California wealth tax.
• Khanna wants to tax billionaires five percent to fund healthcare and schools.
• Cruz taunted Khanna, urging a fifty percent tax to drive billionaires to Texas.
• Khanna fired back, citing Texas’s poor healthcare, education, and worker rights.
• The debate highlights stark choices about funding public services and tax fairness

Rep. Ro Khanna of California and Sen. Ted Cruz of Texas traded fiery posts about a new wealth tax. Khanna supports a ballot measure to tax billionaires five percent of their net worth. He says this money will help working class families with healthcare and schools. Cruz mocked him, saying five percent is too low. He suggested fifty percent to make billionaires flock to Texas. Khanna shot back, pointing out Texas has weak public services because of low taxes on the rich.

The California Wealth Tax Proposal

California’s measure would impose a one-time wealth tax on those worth more than one billion dollars. If approved by voters, it would apply a five percent levy on each billionaire’s net assets. The money would go to Medicaid, public schools, and science research. Proponents say billionaires can afford a small share to boost health care and education. Critics worry it will push the super rich out of the state. Some high net worth individuals, like Peter Thiel, have threatened to leave if it passes.

The Cruz Challenge

Late Saturday, Sen. Cruz urged Khanna to hike the rate from five percent to fifty percent. He wrote that California should drive away its job creators. He said Texas is thriving because it welcomes the wealthy without heavy taxes. Cruz used humor to make his point. He claimed Texans are grateful for every billionaire who moves there. His message tapped into a long debate over whether low taxes attract businesses and rich residents.

Khanna’s Response

Khanna fired back on social media. He said the fight is about values. He argued that billionaires can pay a modest wealth tax so working class Californians have Medicaid and public schools. He pointed out that Texas cut Medicaid programs. He noted that Texas ranks near last in health care, education funding, and worker protections. He added that California still leads with an eighteen trillion dollar innovation economy because it invests in schools and science. Khanna even offered Cruz a tour of Silicon Valley.

Comparing California and Texas Tax Systems

California’s tax system asks more of the rich. It uses progressive income taxes. The proposed wealth tax would add a new layer on super wealthy people. Texas, by contrast, has no state income tax. It relies mainly on sales and property taxes. That makes its system regressive. Low income families end up paying a larger share of their earnings. According to tax experts, Texas ranks seventh worst for tax fairness.

Health Care and Education in Both States

Texas scores poorly on health care performance. It has the highest uninsured rate in the nation. Many working families go without basic medical care. Texas also ranks low in per-student school funding. Class sizes run large and resources run thin. California, meanwhile, spends more per student and has expanded Medicaid under federal law. Critics say its public services still face funding gaps, but overall access remains stronger than Texas.

Worker Protections and Economic Growth

Texas laws give fewer rights to workers. It ranks near the bottom for labor rules and safety standards. California enforces stricter rules on wages, hours, and benefits. That adds costs for employers but boosts job security for workers. Yet California also leads in tech innovation and clean energy. Its ability to attract talent from around the world helps its economy grow. The debate shows how tax and labor policies tie into each state’s strengths and weaknesses.

What the Wealth Tax Could Mean

If voters back the proposal, California could collect tens of billions of dollars. That money could expand health coverage for low income families. It could reduce class sizes and improve school labs. More funding for science research might spur new inventions. Opponents argue the wealth tax violates property rights and could face legal challenges. They warn that some billionaires will leave, shrinking the state’s tax base over time. Supporters counter that most wealthy people stay for quality of life.

Why This Debate Matters

This online spat lifts the curtain on a national debate. Should the richest pay more to support public needs? Or do high taxes chase away businesses and slow growth? Both sides use data to back their case. Yet values play a key role. One side bets on strong social services. The other prizes low taxes and minimal regulation. How voters decide could set a trend for other states and even federal policy.

Looking Ahead

California voters will weigh the wealth tax measure next year. Lawmakers in other states watch closely. If it passes, it may inspire similar plans in New York or Massachusetts. If it fails, critics may see it as proof that high taxes on the rich hurt economic health. Meanwhile, the Khanna-Cruz exchange shows how social media sharpens political fights. It also reminds us that tax policy affects our daily lives, from classroom sizes to doctor visits.

FAQs

How much would the proposed wealth tax cost billionaires?

The plan calls for a one-time five percent tax on net worth above one billion dollars, spread over five years.

Could the wealth tax lead billionaires to leave California?

Some say yes, but many wealthy people stay for the state’s tech hubs, culture, and climate.

What would California do with the revenue?

The money would help expand Medicaid, improve public schools, and fund science research.

Are there similar taxes in other states?

No state currently has a broad wealth tax, but some states tax estates or inheritance at high rates.