As tension over Immigration and Customs Enforcement (ICE) raids and subsequent protests continue to grow, California Gov. Gavin Newsom has hinted that he would cut off the state’s federal taxes. Could that plan really work?
“It wouldn’t,” political insider Phil Matier told Aduacy this week. “It wouldn’t That’s the bottom line.”
In addition to sending in ICE to conduct mass deportations in the Los Angeles area this month, the administration of President Donald Trump sent in the National Guard and Marines to deal with protestors. It was an unusual move, since those troops are typically called in at the request of state officials. In this case, Newsom is actively against the Trump administration’s moves.
“This brazen abuse of power by a sitting President inflamed a combustible situation putting our people, our officers, and the National Guard at risk,” Newsom said in a Tuesday X post.
As for his suggestion that California could cut off the $80 billion in taxes it sends to the federal government, Matier explained that it is connected to the fact that California is considered a “donor state.” According to CBS News, a donor state is “one that provides more in taxes to the federal government than they receive in return,” and California is by far the largest one.
“California, what is the fourth biggest economy in the world,” Matier noted. “It’s an engine, a lot of money coming in and going out of the state, and a lot that money is in taxes.”
However, that doesn’t mean the state can just stop giving taxes over to the federal government.
“The problem is, when we pay our taxes, you don’t pay them to the state and they don’t hand them over to the feds. You pay them to the feds,” Matier told KCBS Radio. “The bulk of the taxes coming out of California are either excise taxes on imports or other taxes that are directly paid to the feds, or our personal income taxes. And I’m sorry, Governor Newsom, but I for one am not withholding my taxes because People that do wind up in jail.”
Even the Newsom administration backs off on the proposal when pressed about it, Matier said.
“Gavin Newsom has gone to court for various things. He's opposed on the Trump administration, not the least of which is the cuts in funding. The problem is with this one, as within other things, when Gavin goes up against the feds, is the feds hold most of the cards. The states just don't have that much control,” he said.
Matier said that both Trump and Newsom like to throw out “performative” suggestions. However, to solve the issues facing California in the wake of the ICE raids, he said that “both of them need to grow up to a certain extent and get with reality.”