Taxation In The Land Of Fruits And Nuts

Just picked this anecdote from a recent Mish post.  You may need to read it a couple of times, just to take it in:

Hi Mish

I just picked up tax documents from my CPA. California require me to pay 30% of my estimated tax for the year on 04/15/10 and another 50% by 06-15-10. The balance of 20% is due on 01-15-11.

They want 80% of my annual estimate after 6 months, taxing me on money I have yet to earn for the year.

'Taxing me on money I have yet to earn for the year....'

Siphoning off actual cash on profits that may or may not materialize.

Hmm...this should encourage business and job formation in California, whaddayathink?

Here's an idea: Have RBS open business lending offices out there on Planet Ahnuld, and use some of that UK taxpayer money to lend to start-ups.  What could go wrong?