Was there not a huge battle, I think in the 80’s, wherein California tried to tax multinationls located there on their world wide income? I believe they lost that battle after quite a few years.
Funny how non state tax states seem to be getting some of the spoils here. It is not coincidental.
CA taxed multinational entities on their world wide income based on a three factor formula of payroll, property, and sales. Based on that formula, that percentage was applied to world wide income and tax computed on that percentage. The entire world wide income was not taxed by CA. When water's edge was put in place, then all taxation stopped "at the edge of the water". So, multinationals simply raised the cost of good sold sky high so that their CA entities never showed a dime of profit and *bingo* no CA taxes.