{"id":500256,"date":"2026-10-18T16:08:56","date_gmt":"2026-10-18T16:08:56","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/500256\/"},"modified":"2026-10-18T16:08:56","modified_gmt":"2026-10-18T16:08:56","slug":"millionaire-scraps-move-to-california-due-to-proposed-wealth-tax","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/500256\/","title":{"rendered":"Millionaire scraps move to California due to proposed wealth tax"},"content":{"rendered":"

A 23-year-old millionaire entrepreneur who was preparing to move to San Francisco has scrapped his plans over California\u2019s proposed wealth tax.<\/a><\/p>\n

Emil Barr warned the state\u2019s political climate could drive away young business founders and cost residents job opportunities.<\/p>\n

Barr, who immigrated to the US from Russia when he was just three, is the founder of Flashpass, a Columbus, Ohio-based company that helps laid-off workers develop new skills and find jobs faster.\u00a0<\/p>\n

Emil Barr, 23, founder of Flashpass, canceled plans to move his business to San Francisco after considering California\u2019s regulatory and tax environment. Courtesy of Emil Barr<\/p>\n

He had already signed a personal lease in San Francisco and planned to relocate first, settle into the city and potentially bring his business to California afterward.<\/p>\n

But Barr changed his mind after learning about Proposition 40<\/a>, a proposed wealth tax targeting the state\u2019s richest residents on this year\u2019s Nov. 3 ballot, which he fears could eventually expand to millionaires like himself.<\/p>\n

\u201cI just didn\u2019t feel welcomed as an entrepreneur,\u201d Barr told The California Post. \u201cObviously, I\u2019m a little bit more sensitive to this because I work with government, but I said, why would I move to a state where the government is basically, first of all, villainizing entrepreneurs and saying that, for some reason, if you built a successful chip manufacturing company, the fact that the healthcare system isn\u2019t working is your fault?\u201d<\/p>\n

Barr originally immigrated to the United States from Russia when he was 3-years-old.<\/p>\n

Proposition 40<\/a> would levy a one-time 5% tax on billionaires who were living in California as of Jan. 1, 2026.<\/p>\n

Unlike income taxes, the measure would target their total accumulated wealth, with the bulk of the money raised going toward the state\u2019s healthcare.<\/p>\n

Barr is not the only prominent critic of the proposal. California Gov. Gavin Newsom has also come out against the measure, while Google cofounder Sergey Brin has contributed money to efforts to defeat it.<\/p>\n

California Gov. Gavin Newsom looks on at the California Economic Summit in Long Beach, California, Wednesday, Oct. 14, 2026. AFP via Getty Images<\/p>\n

But supporters, including Debru Carthan, vice president of SEIU-United Healthcare Workers West, the union spearheading the initiative, have pushed back against warnings that the tax would send wealthy Californians and investors fleeing the state.<\/p>\n

Carthan told Fortune<\/a> that those concerns are unfounded. Supporters argue the measure is necessary to help offset an estimated $100 billion in federal healthcare funding that California could lose over the next five years.<\/p>\n

As for Barr, he said the proposed tax was also particularly concerning because of its potential retroactive implications, which he believes could force wealthy individuals to pay taxes based on assets they held before the measure was approved.<\/p>\n

Although the proposal would not currently apply to him, he fears it could set a precedent for taxing entrepreneurs with smaller fortunes.<\/p>\n

\u201cToday it\u2019s the billionaires,\u201d Barr said, expressing concern that future proposals could target people worth $10 million or more.<\/p>\n

For Barr, the decision wasn\u2019t simply about avoiding higher taxes. He said he understood that doing business in California would be expensive and was initially willing to accept that cost.<\/p>\n

What ultimately drove him away, he said, was what he perceived as an increasingly hostile political attitude toward successful entrepreneurs.<\/p>\n

\u201cWhy would I move to a state where the government is basically, first of all, villainizing entrepreneurs,\u201d Barr said.<\/p>\n

His decision could also have consequences beyond his own business.<\/p>\n

Barr founded Flashpass about two years ago after selling his first company, Step Up Social, a marketing and media business he started at 18 while in college.<\/p>\n

Flashpass now works with government agencies to help unemployed people retrain and return to the workforce more efficiently.<\/p>\n

The city skyline of San Francisco, California, where Barr thought he could bring his business. SeanPavonePhoto \u2013 stock.adobe.com<\/p>\n

California initially seemed like an ideal place to expand because of its concentration of artificial intelligence companies and research labs.<\/p>\n

Barr believed the state would be among the first to experience major job displacement as AI technology advances, creating an opportunity for Flashpass to help workers transition into new careers.<\/p>\n

\u201cWe saw like a very logical reason to be near the newest AI developments and also closest to the people that are losing their jobs first due to AI,\u201d Barr said.<\/p>\n

He argued that without his company establishing a presence in California, residents could have fewer opportunities to access its services and find employment quickly.<\/p>\n

\u201cI don\u2019t think California is going to have the same level of access to our platform,\u201d Barr said, adding that residents \u201caren\u2019t going to be able to find new work as quickly just by virtue of our business not being there.\u201d<\/p>\n

Emil Barr conducting a presentation for the first company he founded: Step Up Social.<\/p>\n

Those potential effects remain uncertain, however, because Barr had not yet committed to relocating the company or established how many California workers Flashpass might have served.<\/p>\n

His original plan was to move himself to San Francisco before deciding whether to relocate the business.<\/p>\n

\u201cI had a personal lease in place and I was planning to move,\u201d Barr said.<\/p>\n

But without the founder living in California, he said, moving the company\u2019s headquarters there was no longer a realistic possibility.<\/p>\n

Barr acknowledged that California would lose relatively little in taxes from his decision alone. Instead, he believes the larger concern is what could happen if other young entrepreneurs follow his lead.<\/p>\n

He said he knows other business founders who have privately decided to leave California or avoid relocating there, although many are reluctant to speak publicly about their decisions because of Silicon Valley\u2019s reputation as a global center of innovation.<\/p>\n

\u201cThere\u2019s this like idea that if you\u2019re not in Silicon Valley, you can\u2019t build an innovative company,\u201d Barr said.<\/p>\n

He believes entrepreneurs who disagree with California\u2019s policies should make their opposition known through their business decisions, rather than continuing to invest in a state whose political leaders they believe are targeting them.<\/p>\n

Barr\u2019s company remains based in Columbus, where it was established after receiving its first government contract from the state of Ohio.<\/p>\n

He said he has not ruled out relocating the business elsewhere, but California is no longer under consideration.<\/p>\n

\u201cI\u2019m not even 100% sure we\u2019ll keep the business in Ohio,\u201d Barr said. \u201cBut I definitely know it\u2019s not going to be California just based off of the political and business rhetoric that\u2019s coming out of that state right now.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"A 23-year-old millionaire entrepreneur who was preparing to move to San Francisco has scrapped his plans over California\u2019s…\n","protected":false},"author":2,"featured_media":500257,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[2080,387,7,657,457,9437,101,103,102,104,106,105,1694],"class_list":["post-500256","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-francisco","tag-artificial-intelligence","tag-business","tag-california","tag-exclusive","tag-gavin-newsom","tag-ohio","tag-san-francisco","tag-san-francisco-headlines","tag-san-francisco-news","tag-sf","tag-sf-headlines","tag-sf-news","tag-taxes"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/500256","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=500256"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/500256\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/500257"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=500256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=500256"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=500256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}