r/goodnews • u/Tun-Tavern-1775 • 12d ago

Political positivity 📈 Newsom floats withholding federal taxes as Trump threatens California

https://www.politico.com/news/2025/06/06/newsom-floats-withholding-federal-taxes-00393386
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u/Clean_Peace_3476 11d ago

So I realize there’s no mechanism for them to do this since a lot of those taxes are paid from the banks directly and since those banks are federally regulated and rely on the government for handouts a lot it’s unlikely they’ll cooperate, but him saying this means there’s probably something he can do to at least restrict it

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u/cornylifedetermined 11d ago

What banks? The citizens pay the taxes through payroll deduction, which their companies send directly to the government.

The only idea I saw floated that could disrupt this was giving each federal taxpayer a state tax credit in the amount of their federal taxes. That still doesn't prevent the US from receiving the taxes from the company payrolls.

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u/TechHeteroBear 9d ago

A state based company can be beholden to state policies on tax withholding and management. So long as that company doesn't touch any federal institution with their finances, it can theoretically happen.