NRT briefing
Ohio millionaire Emil Barr reveals why he suddenly shelved plans to move to San Francisco
Based on reporting by New York Post.
The Brief
Emil Barr, a 23-year-old millionaire entrepreneur and founder of Columbus, Ohio-based Flashpass, has scrapped his plans to move to San Francisco over California's Proposition 40, a proposed wealth tax on the state's richest residents. Barr, who had already signed a personal lease in San Francisco, said the proposal made him feel unwelcome as an entrepreneur.
Proposition 40 would levy a one-time 5% tax on billionaires living in California as of Jan. 1, 2026, targeting total accumulated wealth, with funds going to healthcare. Barr fears the tax could eventually expand to millionaires like himself and set a precedent for taxing entrepreneurs with smaller fortunes.
California Gov. Gavin Newsom and Google cofounder Sergey Brin have also opposed the measure, while supporters, including Debru Carthan of SEIU-United Healthcare Workers West, argue it is necessary to offset an estimated $100 billion in federal healthcare funding losses. Barr said California would lose relatively little from his decision alone but worries other young entrepreneurs might follow his lead.
Flashpass, which helps laid-off workers retrain, remains in Ohio, with Barr ruling out California as a future location.
NRT commentary
How We See It
Emil Barr's decision to abandon his move to California highlights a growing concern among entrepreneurs: the state's political climate increasingly treats wealth creation as a vice rather than a virtue. Proposition 40, though aimed at billionaires, sends a chilling message to anyone who might aspire to that level of success.
If California can retroactively tax accumulated wealth, what stops it from lowering the threshold to millionaires or even smaller fortunes? Barr is not alone in his worry, as evidenced by the private decisions of other founders to avoid the state.
This exodus of innovative talent could have long-term consequences for California's economy and its residents, who may lose access to services like Flashpass that help displaced workers re-enter the workforce. While the tax's supporters see it as a necessary measure for healthcare funding, they underestimate the signal it sends.
When a state's leadership openly criticizes successful entrepreneurs, it discourages the investment and job creation that fuel economic growth. Barr's decision is a rational response to a hostile policy environment, and other states should take note: a business-friendly climate can attract the very innovators that California is pushing away.
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