Founders split on leaving California if billionaire wealth tax passes
Mark Cuban warned that a proposed California wealth tax could drive startup founders away, and three founders gave mixed reactions when asked if they would relocate.
In response to Rep. Ro Khanna, Mark Cuban warned that a statewide "billionaire tax" slated for a November vote would push founders who are rich on paper but cash-poor to exit California, calling those who stay "idiots." Cuban later clarified that not every founder would be affected and noted other states offer incentives. One outlet asked three founders about their plans: Jesse Tinsley, who runs Mainstreet.com, said he would relocate to Florida, citing the Laffer curve and public backlash concerns.
Jaspar Carmichael-Jack, co-founder of the AI firm Artisan, said he would seriously consider a move if the tax passed, noting the difficulty for illiquid founders. By contrast, Jensen Huang expressed acceptance of any taxes, and HiJenny founder Michal Cieplinski argued that the Bay Area remains essential for AI talent and that companies and employees would stay even if founders move.
Why it matters
The debate shows how tax policy could reshape where tech talent and capital concentrate in the U.S.
How the sides frame it
LOW AGREEMENTThe camps focus on different aspects of the debate: Left-leaning coverage highlights founders’ personal relocation choices, centrist coverage stresses Mark Cuban’s blunt warning and the tax’s intent, while right-leaning coverage centers on Rep. Khanna’s loan proposal and its fiscal risks.
LEFT
Covers the split among founders over whether to leave California if the billionaire tax passes, noting their individual rationales.
CENTER
Frames the story around Mark Cuban’s sharp warning that only “idiot” founders would stay, portraying the tax as a contentious policy aimed at funding public services.
RIGHT
Frames the debate around the state-loan plan for billionaires, portraying it as shifting risk to California and questioning its revenue benefits.
The left emphasises
- founders’ relocation plans (e.g., moving to Florida, considering a move)
- cash-poor founders would be hit by the tax
- references to the Laffer curve and public backlash
The right emphasises
- Rep. Ro Khanna’s proposal to lend money to billionaires to cover the tax
- the risk shift to the state and limited immediate cash for health-care
- research suggesting wealthy Californians have already moved wealth out of state
How this story developed
- Aug 16 Mark Cuban warns California billionaire tax could drive startups out of state
- Aug 17 The proposal was certified for the November ballot after securing enough valid signatures.
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