Billionaire founder Emil Barr cites California wealth tax as reason to stay in Ohio

Founder Emil Barr, who runs the AI-focused staffing platform Flashpass, decided against moving to San Francisco after reviewing California's regulatory and tax proposals, including a one-time 5% wealth tax on billionaires that would take effect for residents as of Jan. 1, 2026.

"I think it was less of a matter of immediate finances," Barr told Fortune, adding that he views the state's approach as "anti-entrepreneurial" and that such rhetoric could drive entrepreneurs out of California and the United States.

Barr, who relocated his personal residence and company headquarters to Columbus, Ohio, said he remains uncertain about staying in Ohio long-term but is certain he would not build a business in California under the current climate. He suggested that a more nuanced, progressive tax reform might address revenue needs without discouraging investment.

Supporters of the measure, including Governor Gavin Newsom and union leader Debru Carthan of SEIU-United Healthcare Workers West, argue the tax would raise tens of billions for healthcare, offsetting the loss of federal funding. Carthan called concerns about a wealthy exodus a "scare tactic" and pointed to other states that have taxed high-income residents while continuing to attract investment.

Economists such as Joseph Stiglitz and Paul Krugman have endorsed the proposal, noting its modest impact relative to billionaire wealth gains. Conversely, Nvidia CEO Jensen Huang said he is "perfectly fine" with the tax, citing Silicon Valley's talent pool as a reason to stay.

Research cited by Cornell sociologist Cristobal Young suggests that high earners are less likely to move solely because of tax changes, emphasizing the importance of existing professional networks and personal ties. Young cautioned that California's one-time wealth tax differs from typical income-tax increases and that its effects remain uncertain.