Oh, it would do worse than that.
Every country in the world would see this as their big chance to overtake the US. Russia, China, you name it.
You would have to be an idiot to start a software company in the US. High regulation, high cost of living, high taxes, high salaries, personal liability, and a market controlled by monopolies who have the resources to comply.
They’ll leave. The entire world will be offering every incentive to leave. China would offer $50K bonuses to every engineer that emigrated the next day.