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country, with an economy the  ninth largest in the world, already is "overly reliant on personal income taxes" and that the state's "tax structure is behind the deficit, because it over relies on the personal income tax" as its source of revenue.

He adds that "for California to rely on capital gains tax revenue from things like the Facebook initial public offering is like looking for change in the seat cushions."

FOX Business has already reported that California governor Jerry Brown was too optimistic in forecasting more than $2 billion in expected state capital gains revenue over five years from the social networking site's IPO.

Even the state's own legislative analysts told the governor's office its forecast was too rosy -- as investors could sit on the Facebook (NYSE:FB) stock and not cash out, or simply move out of the state, among other things.

Already, California has seen a migration of upper bracket taxpayers out of the state. It has the worst credit rating out of all 50 states at single A minus.

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