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I think the stronger point to be made here is not whether people would start companies because of this law but whether people would start those companies in America.. especially if they can start anywhere else in the world..
For example, try this thought experiment: Warren's 2% annual wealth tax is a state rather than federal tax. In that case it's pretty easy to imagine that state losing startups as a result.
This is exactly why something like a wealth tax (or, for that matter, things like universal health care) work better at a national level than state, and why I'm less sure about a state-level wealth tax. Details are important in policy making!
In some states, maybe it wouldn't lead to mass flight if the state had enough other advantages built-in. The same way that Silicon Valley took hold in California DESPITE high capital gains taxes and income taxes.
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