The only beneficiary to this is states that don't have this tax condition so that current affiliates incorporate there. Incorporate out of state, file an S-corp

The only beneficiary to this is states that don't have this tax condition so that current affiliates incorporate there. Incorporate out of state, file an S-corp election, get some mail forwarding services out of state, done. CA will not lose any rev, jobs or anything. The whole thing is a giant exercise in paperwork and a few hundred dollars of barrier to entry.