California Gov. Newsom proposes 100% tax on Trump fund

California Governor Gavin Newsom announced plans to impose a 100 percent tax on any payments state residents receive from a $1.776 billion federal fund established by President Donald Trump’s administration. The fund, created as part of a legal settlement between Trump and the Internal Revenue Service, is intended to compensate individuals who claim to be victims of alleged political weaponization by the federal government.

Newsom made the announcement at a press conference on Wednesday, stating that taxing the proceeds is an action the state can and will pursue. He described the fund as a “slush fund” and criticized the potential for it to benefit individuals involved in the January 6, 2021, attack on the U.S. Capitol, many of whom Trump pardoned last year. The governor said people who assault police officers and seek to overthrow democracy do not deserve a taxpayer-funded payday.

The fund was announced last week following Trump’s settlement of a lawsuit against the IRS over the leak of his tax returns. The settlement also includes a provision permanently barring the IRS from auditing past tax claims by Trump, his relatives, and his businesses. The Justice Department stated...