It's important to set the precedent, so further taxes can be levied later.
Driving out thriving businesses is their motto.
It's hugely unfortunate that the political party in total control here is the Democratic Party. I remind these locusts that Venezuela was once a thriving country, leading South America in wealth development. That's going to be the end result of this "tax it till it squeals" mind set in the People's Republic.
If I were Arizona, New Mexico or Texas, I'd be putting together my proposals to all the rocket related companies in the PRC (People's Republic of California) to move, offering all sorts of tasty incentives. The PRC can only promise heavier and heavier taxes and regulations.
This is yet another argument to split California into two or more states, leaving the coastal population centers to the Democrats and their poisonous ideology. The rest of the state, now very red, can then be additional competition in the form of newly born mini Texases to the developing Detroits that SF and LA will inevitably evolve into.