Another perspective on California.

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Taxes are an important aspect, but there are of course other factors that make people choose California over Mississippi or Alabama. I would note that while these states have lower income taxes than California, Alabama has higher sales taxes.
Weather. The weather in the populated parts of California is better than the weather in the populated parts of Alabama and Mississippi. People are willing to pay more for better weather. Add this to better scenery in general.
Universities. California is home to some of the world’s best universities. Alabama and Mississippi are not. People come from all over the country, even the world, to study at these universities. These universities include Stanford, Caltech, Berkeley, UCLA, USC, Harvey Mudd and many others. After studying in California, many of them decide to stay. Universities also bring companies to the state because of the talent pool.
Established industries. The entertainment industry has been centered in Southern California for nearly a century. It’s where people go to do movies. Silicon Valley has been a center of tech since the 1960s. Companies from these sectors go there because it’s where other companies are, it’s where the talent is. New York has the same advantage for financial services, although other places have been getting some of this.
Housing prices and Cost of living. California is disadvantaged here, but it is of course an issue, so it’s worth mentioning.
So California has a lot of natural advantages over other states. People are willing to pay an extra percent or five percent in income tax for the benefits it offers. Take a state that pursues California policies but without the major advantages, and you’ll find a state in trouble. Look at, for example, Rhode Island.

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California takes in a smaller “share” of federal tax dollars than it pays in. The citizens of California have chosen, historically, to fund education, environment, public health at pretty decent levels - therefore, a higher state burden is created.
The climate, available resources and the aforementioned “public goods” tend to attract and retain industry and we'll educated people. Ports help. Oil and mineral wealth helps. Net, net - CA has a GDP per capita about $10,000 higher than the nation as a whole. It's not the highest - some oil/gas states and east coast bastions of “educated elites” are higher still (Mass, Alaska, New York, etc) but California has a massive population too.
Poor southern states underinvest, historically, in that which leads to GDP growth. Alabama, Arkansas, South Carolina…. Smaller states and $10,000 or more per capital UNDER the national average.

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