Since it is unquestionably true that you get more of whatever you subsidize and less of whatever you tax, California will end up with less businesses and wealth.
Not only will some flee the state, but it's a major disincentive to relocate to that state. Given the situation with workmen's comp, taxes, and the regulatory hurdles imposed on businesses in the state, it's hard to understand why any business would voluntarily choose to relocate to California in the present environment.