California’s Counter to Trump’s $1.8bn Fund: A 100% Tax

In a bold move, California Governor Gavin Newsom has proposed a 100% tax on any payouts received by state residents from Donald Trump's $1.776bn fund. This fund, announced by the Department of Justice (DoJ) in May, aims to compensate alleged victims of 'lawfare and weaponization', but its criteria remain unclear.

The fund's origins lie in a settlement between Trump and the Internal Revenue Service (IRS), stemming from a lawsuit over his leaked tax returns. Critics, including Newsom, argue that the fund is a ploy to funnel money to Trump's allies, potentially including those involved in the January 6, 2021, Capitol riot.

Newsom, in a recent statement, emphasized that those who participated in the Capitol siege should not be rewarded with taxpayer money. The Trump administration, however, has praised the rioters as patriots and granted pardons to many charged in the incident.

The $1.776bn fund will be overseen by five individuals appointed by the US attorney general, Todd Blanche, who views it as a means to rectify past injustices. Despite this, Newsom's proposed tax presents a significant challenge, and the DoJ has yet to comment on how they will respond.

This development is the latest chapter in the ongoing feud between Newsom and Trump, who have clashed on various issues, including federal ICE agent deployment, healthcare fraud, and election integrity in California.