^Not necessarily bad for business, but bad at keeping businesses in it, since a larger business would like to move to a state which taxes them less, has more relaxed employment laws and a lower minimum wage.
The current high unemployment is a trickle down effect.
The economy got worse, so businesses left to other states with lower taxes/ more relaxed laws.
People lost jobs when businesses moved.
People without jobs spend less money and pay less taxes.
The state doesn't collect as much tax revenue to fund it's current projects, due to unemployment and borrows more money for some projects.
It cancels other projects leading to more unemployment.
The state also raises taxes on businesses to help pay off some debt.
More businesses leave.
More people unemployed.
More people need to have their houses foreclosed due to job leaving state and unable to sell house at half the value it was bought for.
Without a job people are not able to hire others to do yard work, house cleaning, etc.
And the spiral has continued here in California.
And that is why California is finally going to for Amazon to tax purchases made by Californians. Also that is why we have the Occupy Wallstreet protests outside of my office on a weekly basis. (The Californian headquarters of Wells Fargo is across the street)
