Flashpass Founder Cancels San Francisco Move Over Wealth Tax

Emil Barr, the 23-year-old founder of Flashpass, canceled plans to relocate his company from Columbus, Ohio, to San Francisco. Barr cited California's anti-entrepreneurial political rhetoric and the proposed Proposition 40 billionaire wealth tax as the primary reasons for his decision. While Barr would not currently qualify for the tax, he described the measure as a warning sign that could eventually lead to broader taxes on millionaires.

Proposition 40, which appears on the November 3 ballot, proposes a one-time 5% tax on billionaires who were residents as of January 1, 2026. The measure would earmark 90% of the revenue for healthcare to offset lost federal funding. The proposal has divided high-profile figures in the state; Governor Gavin Newsom and Google cofounder Sergey Brin oppose the tax, while Nvidia CEO Jensen Huang stated he is "perfectly fine" with the measure, noting that the state's talent pool remains a primary draw for his company.

The measure is supported by SEIU-United Healthcare Workers West and several Nobel Prize-winning economists. Supporters argue that the tax will not deter investment, while critics like Barr suggest that such policies discourage entrepreneurs from building businesses within the state.