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California’s impeccably coiffed Governor Gavin Newsom sure has been spending a lot of effort grandstanding lately. While setting himself up to run for the 2028 presidential election – you know he’s going to take a shot at it – he has managed to shovel out an impressive amount of horse squeeze. As my grandfather used to say, if dumb were dollars, he (Gavin Newsom) would be a rich man.
In one of the California governor’s latest outbursts of bad ideas, he’s threatening to withhold federal tax revenues from Washington. There are, of course, a couple of problems with that threat, chief among them being that he can’t; he has no authority and no mechanism to do so. But Treasury Secretary Scott Bessent, who has more financial acumen in his sock drawer than Gavin Newsom has between his ears, has laid out just what consequences may ensue from any such attempt. Mr. Bessent’s battle of wits with the unarmed opponent took place on X. First, Governor Newsom barked:
Californians pay the bills for the federal government.
We pay over $80 BILLION more in taxes than we get back.
Maybe it’s time to cut that off, @realDonaldTrump. pic.twitter.com/lwFHFSgSyJ
— Gavin Newsom (@GavinNewsom) June 6, 2025
But the Secretary of the Treasury was quick to fire back:
Governor @GavinNewsom is threatening to commit criminal tax evasion.
His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes. (1/3) https://t.co/fn7ch7WwoC
— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025
SecTreas had a similar warning for California businesses:
I am certain most California businesses know that failing to pay taxes owed to the Treasury constitutes tax evasion and have no intention of following the dangerous path Governor @GavinNewsom is threatening.
I would warn state officials, including payroll managers, that federal…
— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025
The post concludes:
And finally, some advice:
.@GavinNewsom’s comments are extremely reckless.
Instead of committing criminal tax evasion, Governor Newsom should consider a tax plan for California that follows the Trump Tax Cuts model and reduces the onerous state tax burden to allow families to keep more of their…
— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025
Which again continues:
In other words, the impeccably coiffed Governor Newsom was delivered a polite beat-down by one of the smartest guys in the Trump administration. Of course, Secretary Bessent’s warnings are water off a duck’s back, but it’s a certainty that California business owners are aware of their legal obligations with the payment of collected federal tax revenues, and my guess is that the business community will overwhelmingly comply, no matter if their governor is spouting out enough hot air to challenge Mt. St. Helens.
