Newsom Pushes Massive Tax on Trump-Linked Payments
California Gov. Gavin Newsom is escalating his fight against President Donald Trump’s newly created Anti-Weaponization Fund by proposing a steep financial penalty for anyone in his state who receives money from it…
California Gov. Gavin Newsom is escalating his fight against President Donald Trump’s newly created Anti-Weaponization Fund by proposing a steep financial penalty for anyone in his state who receives money from it.
According to Fox News, while speaking at a Wednesday press conference, Newsom said California is exploring a 100% tax on payments tied to the $1.78 billion fund established through a settlement involving the IRS and the Trump administration.
“Anyone from California that receives any of those funds,” Newsom said. “We want to tax 100% of those proceeds, and that’s an action the state of California can take. It’s an action we look forward to taking.”
The Democratic governor’s remarks immediately intensified an already heated political fight surrounding the fund, which critics argue could reward people connected to the Jan. 6 Capitol riot.
Supporters of the program have described it as a nonpartisan effort aimed at combating politically motivated government targeting. But Democrats have argued it could effectively compensate individuals prosecuted after the Jan. 6, 2021, unrest at the U.S. Capitol.
President Donald Trump pardoned or commuted the sentences of more than 1,500 Jan. 6 defendants on his first day back in office, a move Newsom referenced in his criticism.
The proposal also fueled accusations of hypocrisy from Republicans and conservative critics, who pointed to spending controversies tied to Newsom’s administration in California.
Among the projects frequently criticized by Republicans is a $25 million California legal defense fund established to challenge policies from the Trump administration. California Senate Minority Leader Brian Jones previously labeled that program a “slush fund.”
Newsom has also faced criticism over the state’s handling of emergency COVID-19 contracts during the pandemic.
Investigations into California’s no-bid contracts found that billions of dollars were awarded to companies connected to political donors and insiders during the emergency response period.
The governor’s latest proposal comes as California faces a projected $2.9 billion budget shortfall for the 2027 fiscal year.
Critics have additionally highlighted the ballooning costs of several state-backed infrastructure projects, including California’s high-speed rail system, which now carries an estimated price tag of roughly $128 billion despite no completed track currently in operation.
Another project drawing scrutiny is a wildlife crossing bridge that reportedly exceeded its projected budget by $21 million. Transportation Secretary Sean Duffy previously mocked the project as a “bridge to nowhere.”
Since the Justice Department announced the Anti-Weaponization Fund last week, opposition has spread beyond California.
Democratic lawmakers in New York have introduced legislation aimed at blocking the program, while a Connecticut state lawmaker is also backing a proposal for a 100% tax on any related payments.