California has some of the highest tax rates in the nation and is 48th in the nation in terms of business tax competitiveness.
What is really sad in California is the cost of higher education. In the mid 80s, U.C.S.D cost me about $400 per quarter (which covered health insurance), plus I had to come up with another $300/month on rent. My summer job as a Domino's Pizza guy (at $10/hr after tips) and my part time job throughout the year as a high school teacher's assistant ($7/hr) covered most of my expenses for the year. Folks worrying about California should be looking at the cost of education, and the impact that that might have on innovation.