Except for the very rich, where tax rates are near-stratospheric for the wealthy, who pay a marginal personal income tax rate of 9.3%, one of the highest in the Nation, with Montana being the highest with the top rate at 11%.
And yes, WORKERS COMP is the biggest issue facing the California business climate today where Worker's Compensation has gone up 70% from 2000. Rationalize this with the fact that California ranks 47th in the Nation for the payment of worker's compensation benefits and you don't have to look too far to figure out that it is BALOONING MEDICAL AND LEGAL COSTS, not too mention outright FRAUD that is causing workers comp to go through the roof.
Obviously, the industries where injury risk is the highest are hit the hardest; such as agriculture, food processing, roofing, construction, and heavy manufacturing. As a result, many businesses in these industries have had to raise their prices, lay off workers, and eliminate employee benefits.
Meanwhile, California ranks only 18th in the Nation for Property Taxes,15th in the Nation for Health Care, 19th in the Nation for Sales Tax, and only 19th in the Nation in TOTAL TAXES AND FEES COLLECTED by State and Local Governments as a PERCENTAGE OF PERSONAL INCOME!!!
The bottomline is that the State's heavy reliance on income and sales taxes, rather than more stable property taxes means that revenues can plunge when residents lose their jobs, suffer investment losses or curtail their shopping. All three of those things happened beginning in 2001, precipitating one of the worst fiscal crises California has ever experienced, and a State surplus of $12 billion that swung to a deficit of over $38 billion.