On a related note - California capital gains tax is going up by 50% this year[1] (24.3% to 37.1%). That's a big jump and I haven't heard many people talk about it. In the short term it doesn't have much effect but in the long run it will reduce the amount of capital in the Valley available for angel investment and bootstrapping.
That's completely misleading. The capital gains tax paid by some Californians may be going from 24.3% to 37.1% but only 3% of that has anything to do with California. This is important because changes that affect other states as well do not affect the relative desirability of CA vs. other states.
[1]http://jacobexmachina.blogspot.com/2013/01/the-fiscal-cliff-...