Bessent: Newsom Tax Payment Plan Concerns
- A dispute has erupted between California Gov. Gavin Newsom and former President Donald Trump over transgender athletes and California's tax contributions.
- Trump stated on social media that California would face "large scale fines" for permitting a biological male athlete, AB Hernandez, to participate in girls' state athletic competitions. Hernandez...
- Newsom responded to Trump's threat by suggesting California might withhold its federal tax payments.
California Governor Newsom’s plan to withhold federal taxes faces stern opposition.Treasury Secretary Scott Bessent warns that Newsom’s proposition to cut off payments would be considered federal tax evasion, possibly leaving Californians with unpaid federal taxes. This situation is a direct response to Donald Trump’s threats of fines levied on California over transgender athletes. Bessent calls Newsom’s plan “extremely reckless,” suggesting the state consider tax cuts rather. the ongoing dispute surrounding transgender athletes and California taxes is intensifying with both sides digging in. News Directory 3 can confirm the state’s tax burden is a meaningful point of contention. Discover what’s next in this high-stakes battle over dollars and athletic fairness.
Newsom, trump Clash Over Transgender Athletes, California Taxes
Updated June 08, 2025
A dispute has erupted between California Gov. Gavin Newsom and former President Donald Trump over transgender athletes and California’s tax contributions. The conflict began after Trump threatened to impose fines on California for allowing a biological male to compete in girls’ sports. This situation highlights the ongoing debate about transgender athletes and California taxes, two hot-button issues.
Trump stated on social media that California would face “large scale fines” for permitting a biological male athlete, AB Hernandez, to participate in girls’ state athletic competitions. Hernandez recently won first place in the high jump and triple jump at the state competition.
Newsom responded to Trump’s threat by suggesting California might withhold its federal tax payments. “Californians pay the bills for the federal government,” Newsom posted on X. “We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off.”
Treasury Secretary Scott Bessent countered Newsom’s statement, asserting that such action would constitute federal tax evasion. Bessent warned that Newsom’s plan would defraud taxpayers and leave California residents liable for unpaid federal taxes. He also cautioned state officials about personal liability for attempting to evade taxes.
Bessent suggested Newsom should instead consider tax policies similar to the trump Tax Cuts to alleviate the state’s tax burden, calling Newsom’s plan “extremely reckless.”
The California Interscholastic Federation (CIF) had previously adjusted its rules to accommodate trans athletes. The rules allowed for four finalist spots instead of three in events where Hernandez medaled, ensuring female athletes still received recognition.
“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.”
What’s next
The Department of Justice is conducting a federal probe into California’s policies on transgender athletes, examining potential Title IX violations. The state has also been under inquiry by the Department of Education since February regarding this issue. The clash between Newsom and Trump underscores the escalating tensions surrounding California’s approach to transgender athletes and federal tax contributions.