As tensions escalate between California and the Trump administration over immigration, another potential battlefront is emerging over taxes.
The spat began with reports that the Trump administration is considering cutting funding for California’s university system, the largest higher education system in the nation with about 12% of all U.S. enrolled students.
In response, Gov. Gavin Newsom wrote Friday afternoon in a social media post that California provides about $80 billion more in taxes to the federal government than it receives in return.
“Maybe it’s time to cut that off, @realDonaldTrump,” Newsom said.
I’ve been thinking about this, and I’m afraid I agree. I’m not sure how you could enforce this. Paying federal tax seems like a personal choice and the consequences would be felt by individuals (tax evasion charges, unless trump manages to get it treated as a terrorist act). I’d be interested to see if the state was actually offering to shield CA citizens from being arrested by federal agents or subpoenaed by federal courts.
Also, for the most part the Fed already has our money, right? The majority of that federal tax is withheld from paychecks and goes directly to the Fed…
You can withhold paying your federal taxes from your paycheck. Most people don’t because they don’t want to get stuck with a big tax bill in April with no way to pay it if they spent that money or lost it on a bad investment. if enough people all did that at once, regardless of state, it could put a big financial burden on Trump. The government heavily relies on this steady source of income, and unless you make a lot of money, you are probably getting a federal return every year, which means you gave the U.S. Government an interest free loan of sorts.
You also get hit with an underpayment penalty if you do this and don’t pay estimated taxes too.