Newsom Threatens Federal Tax Revolt as Treasury Secretary Warns of Criminal Evasion

As his state spirals into lawlessness and his credibility evaporates, California Governor Gavin Newsom is now toying with criminal tax evasion and the Treasury Department is calling him out.

Treasury Secretary Scott Bessent issued a blistering warning Sunday after Newsom floated the idea of cutting off federal tax payments from California in retaliation for President Trump’s plan to cancel federal funding to the state amid ongoing anti-ICE riots and the collapse of public order.

“Governor [Gavin Newsom] is threatening to commit criminal tax evasion,” Bessent said in a post on X. “His plan defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes.”

California’s sitting governor is openly suggesting that his state should refuse to pay its fair share of federal taxes, a move that would not only be illegal under federal law but could also devastate California businesses and individuals caught in the fallout.

Bessent didn’t hold back:

• Federal tax evasion carries serious criminal liability including for state officials, payroll managers, and business leaders.

• California already contributes over $80 billion more in federal taxes than it receives, according to Newsom but that’s no excuse for violating federal law.

• The Treasury warned that “an attempt to evade or defeat tax” can trigger personal legal consequences under the Internal Revenue Code.

“Instead of committing criminal tax evasion, Governor Newsom should consider a tax plan for California that follows the Trump Tax Cuts model,” Bessent added. “Reduce the onerous state tax burden and let families keep more of their hard-earned money.”

This stunning escalation comes as Newsom is already embroiled in a feud with President Trump and Defense Secretary Pete Hegseth, who deployed thousands of National Guard troops and placed 500 Marines on high alert to restore order in Los Angeles after ICE agents were attacked by violent protesters.

Newsom called the deployment of Marines “deranged behavior.” But the only thing “deranged” is the idea that a sitting governor would encourage mass tax defiance while his streets burn and federal officers bleed.

Defense Secretary Hegseth didn’t mince words:

“Deranged = allowing your city to burn & law enforcement to be attacked. There is plenty of room for peaceful protest, but ZERO tolerance for attacking federal agents who are doing their job.”

This is what happens when radical progressives run the show lawlessness is rewarded, criminals are protected, and the basic foundation of civic duty is discarded in favor of cheap political theater.

While President Trump is focused on securing the border, restoring law and order, and protecting federal personnel, Newsom is focused on tantrums, lawsuits, and now potential felonies.

The American people are watching. And they’re tired of leaders who would rather break the law than enforce it.

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