US EditionCould California Really Withhold Tax Money From the U.S. if Trump Cuts Federal Funds?
- Last week, Governor Gavin Newsom suggested California might withhold federal tax payments if the Trump administration cuts state funding.
- This proposal arose amid rising tensions over federal threats to reduce funding linked to policies on immigration and other issues.
- California, a donor state, contributes roughly $80 billion more annually in federal taxes than it receives, supporting programs like Medi-Cal and school lunches.
- Treasury Secretary Scott Bessent warned Newsom that withholding taxes amounts to criminal tax evasion and urged a tax plan similar to the Trump Tax Cuts instead.
- Newsom's suggestion highlights growing disputes over federal funding but legal and administrative obstacles make withholding taxes unlikely to succeed.
19 Articles
19 Articles
Schwarzenegger Cautions Newsom on Withholding Taxes
Well, it sounds always easy, isn't it? Arnold Schwarzenegger responded. It doesn't happen because every individual in California pays taxes, pays the state tax, local tax, and pays federal tax. So how are you going to stop them from doing that? Then the IRS is coming after you.
Newsom’s Threat That California Might Withhold Federal Taxes Called ‘Reckless,’ ‘a New Low’
Republican members of Congress on Wednesday assailed Democrat California Gov. Gavin Newsom’s suggesting that it might be time for his state to cut off taxpayer money going to the federal government. Addressing the matter in a June 6 post on X, Newsom said, “Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off, @realDonaldTrump.” “Gov. Newsom’s threat to wit…
[Yomiuri Shimbun] [Washington = Keiichi Nakane] On the 10th, several US media reported that the Trump administration plans to significantly cut the federal budget for California. It is believed that the aim is to put financial pressure on the state government, which is in conflict with the administration over how to respond to the ongoing protests in Los Angeles.
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