Mark Cuban said 'only idiot' founders would stay in California under a wealth tax. We asked 3 founders if they'd leave.

Mark Cuban commented to Business Insider that only foolish startup founders would remain in California if the proposed wealth tax became reality. To test his assertion, Business Insider approached three founders to gauge their intentions should the tax be enacted. The outcomes were varied. Jesse Tinsley, who launched Mainstreet.com, a holding entity for Employer.com, Bench, and other ventures, disclosed his intention to depart California if the tax were to be implemented.

He wrote, "It's not just me. It's every CEO or founder with a billion-dollar net worth minus a few." Tinsley suggested that billionaires wouldn't openly oppose the tax due to apprehension about public backlash. He suggested Florida as an alternative, specifying Miami or the Palm Beach area as potential residences. Jaspar Carmichael-Jack, co-founder of AI-driven startup Artisan, expressed a readiness to contemplate leaving California under the proposed tax regime.

Originally hailing from the United Kingdom, Carmichael-Jack relocated to San Francisco for his business endeavors. He highlighted the adverse impact on illiquid founders who struggle to fund hefty tax obligations while simultaneously sustaining their companies. Jensen Huang, co-founder of Nvidia, expressed his indifference towards the proposed tax.

He asserted his contentment with residing in Silicon Valley, emphasizing the numerous benefits the region offers, such as the thriving startup ecosystem, ample investor support, and access to accelerator programs and hacker houses. Huang's stance seems to be supported by the fact that Silicon Valley's allure continues to burgeon, particularly within the AI sector.

Michal Cieplinski, founder of HiJenny, a firm at the forefront of the AI boom, remained steadfast in her conviction that founders would not abandon the Bay Area. She emphasized that the tax primarily affects those behind public or substantial private companies, who can opt to relocate. However, the core businesses and the majority of their employees would likely remain in California.