Gov. Gavin Newsom mentioned that California might withhold tax payments to the federal government if President Trump reduces federal funding to the state. This proposal intensifies existing tensions between the Trump administration and California, especially regarding immigration policies. Though experts refer to the governor's suggestion as vague, they note the complexity of withholding taxes, as residents pay federal taxes directly. Newsom pointed out that California contributes significantly to the federal budget, often receiving less than it pays. Additional details on how the state would implement this proposal are currently undisclosed.
Gov. Gavin Newsom proposed that California might withhold tax payments to the U.S. if federal funding is cut, signaling a rift with the Trump administration.
Tax experts suggest that withholding taxes is complicated, as residents directly pay federal taxes, raising uncertainty about the potential consequences of the state's threat.
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