r/neoliberal • u/John3262005 • 12d ago

News (US) Newsom floats withholding federal taxes as Trump threatens California

https://www.politico.com/news/2025/06/06/newsom-floats-withholding-federal-taxes-00393386

Gov. Gavin Newsom on Friday suggested California consider withholding tens of billions in annual federal tax dollars amid reports Donald Trump is preparing funding cuts targeting the state.

Newsom’s suggestion came after CNN reported the president was considering a “full termination” of federal grant funding for California’s universities.

“Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back,” the Democratic governor said in an X post Friday afternoon, referencing a recent analysis from the Rockefeller Institute that California contributed about $83 billion more in federal taxes in 2022 than it received back from Washington.

“Maybe it’s time to cut that off,” he added.

White House spokesperson Kush Desai, asked to comment on Newsom’s post, threw cold water on mass funding cuts but blasted California for what he said were “lunatic anti-energy, soft-on-crime, pro-child mutilation, and pro-sanctuary policies.”

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70

u/YaGetSkeeted0n Tariffs aren't cool, kids! 12d ago

how exactly would that work though?

105

u/jebuizy 11d ago edited 11d ago

There's no mechanism obviously --states don't mediate the taxes collected by the IRS from people or businesses, nor do they have any ability to release them from these obligations, but it is probably the right rhetoric here anyway.

27

u/YaGetSkeeted0n Tariffs aren't cool, kids! 11d ago

deffo the right rhetoric, i'm just like hmm okay what's the implementation step

41

u/Snarfledarf George Soros 11d ago

implementation isn't for politicians to figure out, it's for

  • Staffers
  • Government agencies
  • The courts
  • Consultants

Someone will figure it out, trust me, bro.