Bessent Rips Newsom’s Threat to Withhold Taxes

Treasury Secretary Scott Bessent slammed California Governor Gavin Newsom‘s threat to withhold the $80 billion in taxes the state pays to the federal government, calling it “tax evasion.” Newsom’s threat to withhold the taxes came after President Donald Trump vowed to impose large-scale fines on the state of California for letting transgender athletes compete in women’s sports and win multiple titles.

Trump Lashes Out at Newsom

President Trump lashed out at Newsom on Truth Social – mockingly referring to him as “Gavin Newscum” – for allowing what he called a “biological male” to compete in the girls’ state finals: “A Biological Male competed in California Girls State Finals, WINNING BIG, despite the fact that they were warned by me not to do so. As Governor Gavin Newscum fully understands, large scale fines will be imposed!!!” President Trump wrote on his Truth Social platform. His post came a week after he made a similar threat on the Truth Social platform against Newsom over transgender athletes competing in California: “California, under the leadership of Radical Left Democrat Gavin Newscum, continues to ILLEGALLY allow ‘MEN TO PLAY IN WOMEN’S SPORTS.’ This week a transitioned Male athlete, at a major event, won ‘everything,’ and is now qualified to compete in the ‘State Finals’ next weekend. As a Male, he was a less than average competitor. As a Female, this transitioned person is practically unbeatable. THIS IS NOT FAIR, AND TOTALLY DEMEANING TO WOMEN AND GIRLS,” the President wrote.

Newsom Responds

In response to the president’s threats of imposing fines on the state of California, Governor Newsom made a threat of his own, saying, “Californians pay the bills for the federal government. We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off, @realDonaldTrump.” However, Treasury Secretary Bessent pointed out that withholding the money the state of California pays the government would count as tax evasion. Bessent wrote on X, “Governor @GavinNewsom is threatening to commit criminal tax evasion. His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes.”

An Alternative Tax Plan for California

Secretary Bessent also called Newsom’s plan to withhold taxes an “extremely reckless” idea and suggested that the California Governor should “consider a tax plan for California that follows the Trump Tax Cuts model and reduces the onerous state tax burden to allow families to keep more of their hard-earned money.” Bessent further wrote, “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… I would warn state officials, including payroll managers, that federal law attaches personal liability to an attempt to evade or defeat tax.”

The Athlete at the Center of the Controversy

The athlete at the center of the controversy, 16-year-old AB Hernandez, delivered standout performances at the California Interscholastic Federation (CIF) track and field championships, winning the triple jump, tying for first in the high jump and placing second in the long jump. The incident has ignited a heated debate across the nation over the inclusion of transgender athletes in high school sports. The California Interscholastic Federation (CIF) is currently under investigation by the United States Department of Justice for possible Title IX violations. Notably, the investigation follows Trump’s repeated threats to penalize the state of California financially and scrutinize policies he claims violate federal law. In the face of growing scrutiny, the CIF introduced a pilot policy during the championship weekend. Under this new measure, cisgender female athletes received duplicate podium placements and medals they would have earned had Hernandez not participated. However, many critics labeled the move a “political concession” that undermines transgender inclusion while failing to appease either side of the debate fully.

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