Many companies are indeed leaving California [1], and moving to 'friendlier' areas. The same has been true of numerous high income/wealth individuals. If California levies a wealth tax, I'd expect them to accelerate the decline. Norway actually had their own experience with this recently. They decided to slightly raise the wealth tax (which they already had in place) to try to squeeze their highest wealth citizens even more. Enough people left the country that their net tax revenue actually decreased. [2] To stop this, they're now considering trying to pass an 'exit tax' where people who leave the country will be taxed. I'm sure that'll work out great for them. I'd never heard the term kakistocracy before this article, but wow does it fit for much of the world's governance in modern times.

[1] - https://buildremote.co/companies/companies-leaving-californi...

[2] - https://www.telegraph.co.uk/business/2023/04/10/norway-wealt...