They are also trying to legislate a super-tax on all companies doing over a million dollars in business a year.
I guess they figure companies that big do business across state lines, so by forcing them to raise prices that will offset the super-tax, customers out of state will be inadvertently subsidizing Sacramento.
A certain amount of out-of=state customers will put up with the price hike, but I would think most customers just switch suppliers for the lowest price. This hurts everyone but the politicians, which could make anyone masochistic enough to continue living in California a little cynical.
One should note that in CA, a million dollars is nothing. Any decent business makes more.