Why does no one understand this?

California is really liberal and corporate unfriendly. The taxes are too high.

Corporations flee in record numbers to Nevada and other bordering states.

California sees that its income isn't high enough to support its socialist agenda. Its deficit soars to the highest of any state in the history of the United States.

California raises taxes, raises worker's comp, becomes more corporate unfriendly, as a solution to its problem.

In response, more corporations flee the state...

Notice at a NATIONAL level, this sort of socialism is working, because companies want to stay in the US (mostly). But when you have a socialist state, companies are just going to bail. You can't leech off the productive people forever, if they're still allowed to leave the state.

The funny thing here is that the liberal response to a problem like this is to do something insane like propose legislation FORBIDDING companies to leave the state, so that they can safely suck their blood. It could happen.

God forbid you tax less, and spend less.