I don't think that's a fair example. I'm not sure what it's like to run a small business in California. But the answer to that situation is progressive taxation, and California has one of the most progressive tax systems in the US. https://taxfoundation.org/which-states-have-most-progressive...
>>chris1+(OP)
Punitively high static costs of living and costs of doing business have profoundly cascading effects on people. Progressive tax rates have absolutely nothing to do with that.