Top best/worst states for doing business - TX #1 & CA #50

If California and New York are the two worst states for businesses, then why are so many tech companies in California, and financial companies in New York? Yes there are more regulations in California, but clearly they are missing something in their rankings.

California: "Major income-tax hike in November hastens self-imposed economic decline."<p>How does an income tax hike lead to an economic decline? That's more an opinion than a factual statement.<p>Also the "Domestic Migration" figure is high, but not per-capita. A very populous state like California will obviously have a lot of migration. Alaska sure to come out on top in this department.

This list is without context. Is it based solely on how business friendly the state is in terms of taxes and licensing requirements? Is workforce education taken into account?<p>Edit: Apparently they give you the ranking information if you click on the individual states.