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.
I wonder how one could do this.
The state of California could implement say, an 80% state income tax. This would be deductable from federal tax per IRS tax code. The state could then create an instant tax credit to credit back a gross 69% income, leaving 11% to the state to match their current tax rate.
The Feds would only get tax on 20% of wages, unlike the 89% they do now
It would only delay things. When you get a state tax refund, the next year it’s counted as federal wages.
Taxes are collected through the private for-profit banking system in a manner that’s completely disjointed from the state of residency. Payroll taxes are incredibly efficient, with north of a 98% collections rate, for this reason. The private banks need the Federal Reserve and the Federal Reserve needs the US Treasury. So when the US Treasury says it’s taking a vig on your employer’s deposit at Bank of America or Citigroup or even your local Credit Union, compliance is instant and unquestioning.
Going Unbanked is one way to get around this. But without an employer who is operating on the same wavelength and willing to play ball, unbanking yourself is difficult and expensive and fraught with criminal liabilities.
So, the short answer is that there’s no (practical) way for a State Government to intervene on Federal income tax collection. Not when all the transactions are taking place in a server farm hosted in a NYC boiler room, anyway.
There are other comments that already give practical ways to accomplish what you say is impossible.
Link?
Simply don’t do the thing.
Individuals don’t typically pay taxes themselves. They get deducted from paychecks. Employers do this before we even get paid. So companies would need to support this. But then you have some like my employer who has hundreds of people in California but is based in another state. How is that going to work? This just isn’t as easy as residents just deciding not to.
Okay. I didnt know this. I’ve never actually paid taxes myself.
But it’s also possible other states get on board, and i know domestic industries like cannabis that dont do business with the maij body of the empire play it pretty fast abd loose with taxes.