Business Notes Government

Ever since multinational corporations began crowding into California in the 1970s, they have been lobbying local legislators to repeal the state's onerous "unitary tax" law. Under its provisions, these companies had to pay taxes on their global profits, rather than only on income made in California. The California legislature has now passed a bill allowing firms to pay a tax equivalent to just .03% of their statewide assets, payroll and sales. The new system is expected to cut the California taxes of some foreign companies by 75% or more.

A pleased Sony said last week that it would now invest some $30 million to expand its TV manufacturing plant in San Diego and $5 million in a new headquarters in Cypress. Other overseas firms that have avoided California are also expected to invest there.