Josh Elman said California's debate over a one-time 5% tax on billionaire wealth risks pushing founders and startups out of the state, citing Tesla and SpaceX headquarters moves to Texas as evidence that policy can influence where companies build and hire. Elman made the comments in response to Rep. Ro Khanna (D-Calif.), who backed the proposal and said 72% of billionaire wealth is held in public stock while calling for "a new social contract for this country." The dispute follows Mark Cuban's warning that he could require some startups to leave California before he invests if the measure passes. The November ballot measure, backed by SEIU Healthcare Workers West, would apply to people worth more than $1 billion who lived in California on Jan. 1, 2026, and supporters say it could raise about $100 billion for healthcare. Gov. Gavin Newsom (D) opposes the proposal, while the nonpartisan Legislative Analyst's Office estimates it could raise tens of billions initially but later reduce annual income-tax revenue by hundreds of millions.