By targeting them. It seems that whenever the statists discover private enterprise they mercilessly attack it. They do that with taxation. I know that the state and most of its cities are running deficits in their budgets. That’s because of spending.
The administrators don’t want to reduce spending. Instead they want to Increase income through fees and taxes. But, as RD has said many times, actions have unintended consequences. In the case of California wealthy people like Phil Mickelson and Tiger Woods are moving out. Businesses are leaving or closing down.
The added costs of these fees and taxes will be borne by the few businesses that remain. That will make their products and services, necessarily, more expensive.
We see an excellent example each year as we pass from Arizona into California at Needles. The gas stations have their fuel prices posted for all to see. Gas in Needles is a dollar higher than it is in Bullhead City nearby. Tax differentials make the difference.