According to a report on the website wizbangblog.com, there's a mass exodus of businesses escaping from California. Why? Blame it on the "Amazon tax."

The article cites Big Government.com, which reports that over 70 Internet affiliate marketing firms that conduct business with online retailers such as Amazon.com have packed their bags and relocated out of the state.  The report notes that many other online affiliate marketers have simply discontinued their California operation.

As you are probably aware, California recently passed the “Amazon tax” law, which requires Internet retailers to pay sales tax on revenue generated by its California affiliates.  The law was intended to generate additional tax revenue for the cash-starved state. The end-result does not appear to be very positive thus far.

Many of those who supported the Amazon tax law believed the threats from online retailers who said they would have to leave the state or go out of business were idle threats. They called the retailers' bluff -- but it appears so far the retailers were not bluffing.