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I mean it also requires the companies to be incorporated in CA, but Delaware has gone to great lengths to make it super easy to be "a Delaware company" w/o any actual meaningful proportion of the business there.

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By my reading, it applies regardless of place of incorporation:

> The proposal would only apply to companies that post at least $10 million of taxable income from business conducted in California

I'm just not sure how the various US courts would interpret that?

Eg. lets says CA said you have to pay business tax if you make more than $X in CA, would that hold up?

The status quo is that every company with operations in CA has to pay the CA corporate income tax based on its CA-derived taxable income. This is true regardless of where the company is incorporated. This is also broadly true for every state that collects state corporate income taxes i.e. they use their tax authority to levy tax on business activities conducted within their state.

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