Representative Ro Khanna has publicly supported a wealth tax, clarifying his position in a Substack essay. He advocates for taxing fortunes of $50 million and above at a 2% annual federal rate. This proposal, based on Elizabeth Warren's Ultra-Millionaire Tax Act, aims to include centimillionaires, not just billionaires. Khanna intends for this tax to bypass irrevocable trusts, targeting the original grantor of the trust. Critics like Steven Sinofsky and Mike Solana argue this is an annual asset seizure, not a true wealth tax. The proposed threshold has shifted from $1 billion to $100 million and now to $50 million. Inflation has also effectively lowered the real threshold since the bill's introduction in 2019.The bill includes a provision to automatically increase the tax rate to 6% under certain conditions. International examples show that wealth taxes often expand to include the middle class to be fiscally viable. Khanna criticized Governor Newsom's proposed tax as an income tax less impactful than a direct wealth tax. Critics questioned the necessity of new taxes when existing fraud costs are significant.One response highlighted that the "philosophical case" for the tax relies on need rather than established claims on property. Khanna's comparison of his proposal to property taxes was met with criticism due to differences in transparency and oversight. The federal wealth tax lacks the local accountability of property taxes, with funds going to the general fund without specific earmarks mentioned in the bill text. The bill mandates annual IRS audits of those subject to the tax and grants the agency expanded valuation authority. An exit tax of 40% is also proposed for those leaving the country. Reports also surfaced detailing how Khanna's own family fortune is held in trusts, the same mechanism he now proposes to tax. The fine print consistently indicates a broadening scope beyond initial "billionaire" branding.