Urgent Warning to Newsom: Potential Criminal Tax Evasion for Withholding Federal Taxes

California Governor Gavin Newsom is facing serious scrutiny after suggesting he might cut off tax payments to the federal government. This threat came just days after reports that former President Donald Trump was considering significant funding cuts for Democratic-led California.

Scott Bessent, the U.S. Treasury Secretary, responded sharply. He warned Newsom that withholding taxes could be viewed as “criminal tax evasion.” In a post on X, Bessent stated, “Gavin Newsom is threatening to commit criminal tax evasion.” He emphasized that most California businesses understand the importance of paying their taxes.

Bessent called Newsom’s comments “extremely reckless” and encouraged him to adopt a tax strategy similar to Trump’s federal tax cuts instead of pursuing this contentious route.

Newsom had previously highlighted that California contributes more than $80 billion in taxes than it receives from the federal government. He argued it might be time to reevaluate this imbalance, especially with potential cuts looming from Trump. In a statement linked to a CNN report, he expressed frustration over the perceived unfairness in funding.

A spokesperson from the White House criticized California’s policies, labeling them as “lunatic.” However, he cautioned that no final decisions had been made regarding federal funding, suggesting that discussions were still in the early stages.

This isn’t the first time Newsom and Trump have exchanged heated remarks regarding federal resources. Recently, California’s funding for flood prevention projects was cut by $126 million, and Trump has threatened penalties related to the participation of transgender athletes in state events.

The tension has led to a surge in conversations among California officials. Assembly Speaker Robert Rivas called the potential funding cuts “unconstitutional and vindictive,” asserting that California is a significant economic driver for the nation. He indicated that the state would consider every legal option, including withholding federal tax payments, to defend its interests.

As discussions evolve, more Californians are weighing in on social media, expressing diverse opinions on the implications of tax withholding and federal funding cuts. Ultimately, this situation underscores the ongoing struggle between state and federal authority, as well as the political divide that continues to shape current events.

In light of recent talk regarding taxes and federal funding, it’s critical to keep an eye on how this plays out. Public sentiment and official responses will likely shape both California’s immediate future and its long-term relationship with the federal government.



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