cost labor, proximity to suppliers and a comprehensible and a favorable tax system. California ranked last or bottom tier in all of those categories. And California's 9.3 percent income tax on middle class workers -- those who earn more than $48,000 -- is higher than what millionaires pay in 47 states. Joel Kotkin, a demographer and Californian who has fled the state, said California used to be a haven for businesses. "The state is [now] run for the very rich, the very poor, and the public employees," Kotkin told The Wall Street Journal. The Tax Foundation noted in a report that states like California and New York struggle with attracting businesses primarily because of their tax systems. "The evidence shows that states with the best tax systems will be the most competitive in attracting new businesses and most effective at generating economic and employment growth," according to the report. Texas' state and local tax burden is currently estimated to be 7.9 percent of income, one of the lowest in the nation, according to the Tax Foundation. Texas also boasts cheap labor and no state income tax. California's Democratic Gov. Jerry Brown has already released a plan to close the state's $16 billion dollar budget gap by increasing taxes. "I'm linking these serious budget reductions ... with a plea to the voters: Please increase taxes temporarily," Brown said during a press conference in May . Content created by The Daily Caller News Foundation is available without charge to any eligible news