The Trump administration is preparing to cancel a large swath of federal funding for California, an effort that could begin as soon as Friday, according to multiple sources.
Agencies are being told to start identifying grants the administration can withhold from California. Sources said the administration is specifically considering a full termination of federal grant funding for the University of California and California State University systems.
Singling out one state for massive cuts would be an unusual move, but Donald Trump has long made Democratic-led California a target.
If the federal government isn’t going to give California back the federal taxes paid by its citizens then it should stop paying federal taxes.
Taco Don doesn’t understand how anything works.
Is that functionally just seceeding?
I have NO clue what the legal ramifications are here. If it’s not, that would seem like a next step.
I wonder how one could do this.
The state of California could implement say, an 80% state income tax. This would be deductable from federal tax per IRS tax code. The state could then create an instant tax credit to credit back a gross 69% income, leaving 11% to the state to match their current tax rate.
The Feds would only get tax on 20% of wages, unlike the 89% they do now
Then you get something like the current SALT cap that cancels that out
It would only delay things. When you get a state tax refund, the next year it’s counted as federal wages.
Delaying things might be enough if the state can do it for years
Taxes are collected through the private for-profit banking system in a manner that’s completely disjointed from the state of residency. Payroll taxes are incredibly efficient, with north of a 98% collections rate, for this reason. The private banks need the Federal Reserve and the Federal Reserve needs the US Treasury. So when the US Treasury says it’s taking a vig on your employer’s deposit at Bank of America or Citigroup or even your local Credit Union, compliance is instant and unquestioning.
Going Unbanked is one way to get around this. But without an employer who is operating on the same wavelength and willing to play ball, unbanking yourself is difficult and expensive and fraught with criminal liabilities.
So, the short answer is that there’s no (practical) way for a State Government to intervene on Federal income tax collection. Not when all the transactions are taking place in a server farm hosted in a NYC boiler room, anyway.
its a good thing i stopped paying federal taxes.
First pretty dumb to say this publicly if true… But second: you do realize that the rules about paying taxes literally, only apply to people like you and I? They 100% will continue to go after low hanging fruit, and that means people who can’t afford a team of attorneys on retainer.
You will lose against the IRS. The only way this works is if everyone acts together. You cannot beat Uncle Sam alone.
i’m gonna have to go ahead and disagree with you there. its been easy as hell to cheat on your taxes for a long time. extremely easy to invent stuff and end up owing 0. not as easy for them to actually check. especially not now.