Newsom’s Federal Tax Boycott: Will Blue States Defy Trump?
Escalating tensions between California and the Trump administration have led to a potential conflict over tax funding. California Governor Newsom threatened to withhold the state’s substantial tax contributions to the federal government—approximately $83 billion more than it receives in return—in response to potential federal funding cuts to the state’s university system. Treasury Secretary Bessent countered, accusing Newsom of threatening criminal tax evasion and suggesting California adopt Trump-era tax cuts. This “donor state” dynamic highlights the significant financial disparity between states’ tax contributions and federal funding received.
John Q. Hosedrinker