Newsom to impose 100% tax on California payees of Trump’s $1.8bn fund
State’s governor looks to thwart US president’s plan to divert money to allies, including January 6 rioters
TL;DR
- California Governor Gavin Newsom plans to impose a 100% tax on state residents receiving funds from Donald Trump's $1.776 billion "anti-weaponization fund."
- The fund was created through a settlement between Trump and the IRS after Trump sued over his leaked tax returns.
- Critics, including Newsom, view the fund as a "boondoggle" intended to divert money to Trump's allies, possibly including January 6th Capitol rioters.
- The fund will be overseen by five appointees and is meant to compensate alleged "victims of lawfare and weaponization."
- Claims for the fund will not be processed after December 1, 2028, with remaining funds returned to the federal government.
- This action is the latest development in the ongoing feud between Newsom and Trump.