SAN JOSE, Calif. (Diya TV) — A fight over a proposed billionaire tax in California has spilled into a closely watched Bay Area House race. Rep. Ro Khanna now faces a Democratic challenger who says Silicon Valley voters want new leadership.
Ethan Agarwal, a former tech entrepreneur, announced Tuesday that he will run against Khanna in California’s 17th Congressional District. The district covers much of Silicon Valley and includes tech giants such as Apple Inc. It is also the wealthiest congressional district in the nation.
Agarwal says Khanna has shifted too far from local concerns. He argues that Khanna focuses more on national politics than on the needs of his South Bay constituents.
Khanna, a progressive Democrat, has represented the district since 2017. He has built a national profile with outspoken views on economic reform, technology policy, and wealth inequality. He has also voiced support for higher taxes on the ultrawealthy, including proposals often described as a “billionaire tax.”
Agarwal says that stance has angered parts of Silicon Valley. He believes many tech leaders and entrepreneurs feel targeted by such proposals.
“If you look at what he’s done in the last eight years, the guy has, like, 180-ed from what he initially stood up for,” said Agarwal to the San Francisco Chronicle. “This district is not being represented by somebody who cares about this district. What he’s doing is setting himself up for a 2028 presidential run.”
Khanna has not announced any plans to run for president in 2028. He does though appear often in national media, takes part in debates on federal economic policy and regularly visits traditional early Presidential campaign sites like Iowa and New Hampshire, sources close to Khanna have told Diya TV.
Agarwal hopes to tap into frustration among voters who worry that aggressive tax policies could hurt innovation and investment in Silicon Valley. He says he supports economic fairness but wants policies that protect local jobs and businesses.
The billionaire tax debate has divided Democrats in California and across the country. Supporters say higher taxes on the wealthiest Americans would help fund public services and reduce income inequality. Critics argue such measures could drive investment out of the state.
California lawmakers have floated different versions of wealth tax proposals in recent years. Though none have become law, the issue remains politically charged.
Khanna has long supported progressive tax reform. He often calls for stronger federal action to address wealth gaps. His supporters say he stands up for working families in a district dominated by powerful corporations.
They also argue that Silicon Valley’s wealth brings a responsibility to support broader social programs. Khanna has pushed for policies that aim to balance economic growth with social equity.
California’s 17th District sits in Santa Clara County. It includes cities such as San Jose and Fremont. The area plays a central role in the tech industry and national economy.
The district leans heavily Democratic. That means the primary election could decide the seat. A strong challenge within the party could test Khanna’s support after five terms in office.
Agarwal, 40, says his background in tech gives him insight into the district’s concerns. He describes himself as a Democrat who believes in innovation, economic growth, and pragmatic leadership.
He argues that Khanna’s focus on national issues has left local priorities behind. Agarwal says he wants to concentrate on public safety, small businesses, and policies that keep Silicon Valley competitive.
Khanna’s allies reject that criticism. They point to his work on technology policy, manufacturing, and job creation. They also note his efforts to question tech CEOs in Congress and to promote responsible innovation.
The emerging contest highlights tensions within the Democratic Party. Some Democrats push for bold wealth taxes and sweeping reforms. Others warn that such policies could alienate business leaders and moderate voters.
Political analysts say Silicon Valley’s reaction to the billionaire tax debate could shape the race. If voters see Khanna as too focused on national ambitions, Agarwal could gain traction. If they value Khanna’s progressive leadership, he may hold his seat with ease.
