California Tax Would Hurt Investment, EU Businesses Warn Newsom

European companies are urging California Gov. Gavin Newsom (D) not to proceed with a tax measure that could expand the state’s reach over multinational companies operating in the state.

In a letter to Newsom, BusinessEurope Director General Markus J. Beyrer warned that the initiative (A.B. 1790) would subject companies to taxes on income that’s already been taxed. That creates legal uncertainty and might prompt European businesses to rethink their investments in the state, he said.

“At a time when stability in EU-US economic relations is of particular importance, a unilateral measure of this kind is not simply ...