Ohio entrepreneur Emil Barr has dropped plans to move to San Francisco because of a proposed California wealth tax. Barr, 23, had signed a personal lease in the city and was considering moving his Columbus-based company, Flashpass, to the state later.
Proposition 40, set for the Nov. 3 ballot, would impose a one-time 5% tax on the accumulated wealth of billionaires living in California as of Jan. 1, 2026. Most of the proceeds would go toward healthcare. Barr is not subject to the proposed billionaire tax, but he fears it could eventually be extended to millionaires. He also warned that the state's political climate could discourage young founders from relocating and reduce job opportunities.
Flashpass helps laid-off workers build skills and find jobs. Gov. Gavin Newsom opposes the tax proposal, and Google cofounder Sergey Brin has donated to efforts against it. Supporters, including a leader of the union spearheading the measure, dispute warnings that it would drive wealthy residents and investors away.
Please note! Comments are published by readers. The opinions expressed may not reflect the position of the editorial team. NYCT is not responsible for the content of readers' opinions and asks authors to observe moral standards, not to incite national or racial hatred, and to avoid rudeness. Think before you speak. You are responsible for your words! By publishing an opinion, you agree to the rules! If this request is ignored, NYCT reserves the right to deprive the user of the ability to leave comments.