Probably a decent fraction of founders hope to reach the point where the tax would come into play. Maybe some other locale can use this to finally convince VCs and startups to cluster somewhere else.

Kind of a lot of people in the Gold Rush State. Between the dreamers of Hollywood and Silicon Valley, a lot of folks go there to become wealthy. And even if only a small fraction do, it's still more than almost anywhere else in the world.

Yeah this is a "don't live here if you plan to ever be rich" law. Fortunately that part of the law is unlikely to be constitutional.

Do you know what the "ycombinator" in this site's URL is a reference to?

Are you talking about the startup accelerator or the functional combinator used to achieve recursion without naming a function that calls it self?