Earlier quoted context omitted.
Erm.. I'm certainly no expert, but 'we have to pay more for benefits like health care' should be somewhat qualified. In DE half of the (state based. There's a 'I don't want to be part of the general system' option that works slightly different) health care is payed by your employer, half is deducted from your salary. It's a percentage of your income. Next thing that kind of trips me here is that I'm pretty sure that…
Marginal tax rate for me is around that (including California state tax) and likewise that doesn't include the Social-security and medicare. Also, we have very limited safety net for retirement, so figure another 10% (or so) going to retirement savings. With my 401(k) contributions, my paycheck is almost exactly 1/2 of my gross pay.
Yes California is expensive, tax-wise, but it's not as expensive as most places in Europe. Other places in the US are much cheaper.