California to Impose 100% Tax on Trump's Jan 6 Slush Fund, Newsom Says

California tax proposal: California Governor Gavin Newsom will impose a 100% state tax on any payments California residents receive from President Trump's $1.776B anti-weaponization fund. The Silicon Review reports on the escalating legal and political battle.

California Governor Gavin Newsom announced that the state will impose a 100 percent tax on any payments distributed to California residents from President Donald Trump's controversial $1.776 billion "anti-weaponization" fund, escalating a growing Democratic effort to block the payout scheme.

"Anyone from California that receives any of those funds, we want to tax 100 percent of those proceeds," Newsom told reporters in Sacramento. "That's an action the state of California can take. It's an action we look forward to taking." 

The California tax proposal targets a fund created by the Department of Justice as part of a settlement agreement after Trump dropped a 10 billion lawsuit against the IR Sover leaked tax records. The settlement establishes 1.776 billion compensation pools for individuals who claim they were victims of government "weaponization." 

January 6 funding controversy: Critics across the political spectrum have blasted the fund as a potential "slush fund" that could reward Trump allies, including individuals convicted for their roles in the January 6, 2021 attack on the U.S. Capitol. Newsom directly referenced the riot while defending the proposed tax.

The governor's press office described the fund as a "slush fund" in a social media post announcing the tax plan.

Newsom's proposal would require approval from the state Legislature. He acknowledged that the measure could face legal challenges, including arguments over the Supremacy Clause if the tax is interpreted as an attempt to neutralize federal decisions.

The $1.776 billion fund has drawn sharp criticism from both Democrats and Republicans. Senate Majority Leader Chuck Schumer and Senate Finance Committee Ranking Member Ron Wyden have introduced federal legislation to impose a 100 percent excise tax on payments from the fund, with an additional 50 percent penalty for willful evasion.

The DOJ has said a commission appointed by the Attorney General will oversee the fund, with quarterly reports on recipients. Claims will not be processed after December 1, 2028. Acting Attorney General Todd Blanche has defended the fund as a lawful avenue for victims of "lawfare and weaponization" to seek redress.

As California moves to impose a 100 percent tax on Trump's $1.776 billion anti-weaponization fund, The Silicon Review examines how Democratic-led states and congressional lawmakers are racing to neutralize a payout scheme that critics say could reward January 6 rioters with taxpayer money.