The Trump administration is preparing to cancel a large swath of federal funding for California, an effort that could begin as soon as Friday, according to multiple sources.
Agencies are being told to start identifying grants the administration can withhold from California. Sources said the administration is specifically considering a full termination of federal grant funding for the University of California and California State University systems.
Singling out one state for massive cuts would be an unusual move, but Donald Trump has long made Democratic-led California a target.
Remember, the state doesn’t pay taxes, individual citizens do by filling out their annual federal income taxes.
So, if “California” were to stop giving money to the federal government, the governor would basically need to convince individual citizens not to file their 1040.
And all of those people would have to clinch their assholes and hope Trump didn’t sick the IRS on them.
Also employers would need to all simultaneously stop withholding taxes from employee paychecks for federal taxes, since you can’t just update your W-2 to a $0 withholding without claiming dependents, multiple other jobs, etc. You don’t “choose” your withholding, you just check the boxes that calculates the minimum withholding.
They can stop taking federal taxes out of state employee pay
But then each of those people get walloped with a big ass 1040 payment from the feds at the end of the year. And they feds can chose to make an “example” of random people who don’t pay up.
California imposes a new law that companies operating in Cali cannot automatically collect federal income tax from Californian citizens.
Cali raises the state tax rate to match the current federal rate (could probably go lower actually, since Cali is subsidizing most of the red states).
Boom, no more taxes paid to the Fed.
Or… Cali’s creates a law where their own tax department collects the federal tax and pays it for their citizens.