CRIMINAL EVASION? – Feds WARN California!

Accusations of criminal tax evasion fly as a political clash erupts between Governor Gavin Newsom and U.S. Treasury Secretary Scott Bessent over California’s threatened $80 billion federal tax holdback.

At a Glance

• Treasury Secretary Scott Bessent accused Governor Newsom of threatening tax evasion.
• Newsom proposed withholding $80 billion in federal taxes due to funding cuts.
• Bessent warned this could lead to personal liability for state officials.
• The dispute is part of ongoing tensions between Newsom and the Trump administration.

Allegations and Warnings

U.S. Treasury Secretary Scott Bessent slammed California’s Governor Gavin Newsom, accusing him of “threatening to commit criminal tax evasion” over his controversial suggestion to withhold $80 billion in federal taxes. Newsom’s unsettling proposal emerged as a response to potential federal funding cuts under the Trump administration, a move sparking furor in Washington. Bessent, seizing the opportunity, cautioned about legal consequences California might face and urged businesses to disregard the reckless proposition.

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Bessent did not mince words, warning that failing to abide by federal taxation laws constitutes a crime and could sink state officials into personal liability. Bessent’s advice? Adopt a tax approach akin to the Trump Tax Cuts to alleviate the heightened tax burdens felt by Californians. To support his accusations, Bessent asserted, “I am certain most California businesses know that failing to pay taxes owed to the Treasury constitutes tax evasion and have no intention of following the dangerous path Governor @GavinNewsom is threatening.”

Newsom’s Tax Rebellion

Governor Newsom’s suggestion to hold back federal taxes wasn’t made lightly. It comes amidst his ongoing battle with the Trump administration. At the core of this squabble is Trump’s vow to penalize California for letting a male athlete triumph in girls’ sports, an outcome facilitated by the California Interscholastic Federation’s new rules supporting trans athletes. Newsom, rejecting federal intervention, argued, “Californians pay the bills for the federal government,” highlighting the state’s disproportionate tax contributions with little return.

“Californians pay the bills for the federal government,” – Gavin Newsom.

While Newsom’s office remained tight-lipped, the state’s frustration stems from larger issues, including threatened troop deployments in California. Defense Secretary Pete Hegseth defended such actions, emphasizing, “Deranged = allowing your city to burn & law enforcement to be attacked. There is plenty of room for peaceful protest, but ZERO tolerance for attacking federal agents who are doing their job.”

A Heated Backdrop

This feud is the latest chapter in California’s ongoing battles against the Trump administration. Disagreements over proposed troop deployments to handle anti-ICE protests in Los Angeles have further strained relations. Although Newsom criticized the measure, Hegseth defended it, stressing the need to protect federal agents from attacks. With tensions mounting, the underlying issues around tax payment threats and federal funding cuts reveal a deepening divide that neither side seems eager to bridge.

A Biological Male competed in California Girls State Finals, WINNING BIG, despite the fact that they were warned by me not to do so,” – Donald Trump.

The Treasury Secretary’s accusations punctuate an already explosive situation between the Trump administration and California. The state’s threat to withhold $80 billion in taxes could set a dangerous precedent, igniting further friction between state and federal authorities. As Scott Bessent and Gavin Newsom remain locked in a bitter exchange, the broader implications spell potential repercussions for state policy and governance across the nation.