California’s Democratic leadership said the state might “cut off the Feds” by withholding taxes or enacting other financial transfers after the Trump administration threatened to withhold money from sanctuary cities, reported CBS Bay Area.
“California could very well become an organized non-payer,” said Willie Brown, Jr., a former speaker, told the CBS affiliate.
“They could recommend non-compliance with the federal tax code.”
Democrats are now considering a tax revolt as part of a so-called “war” against President Donald Trump. It could also include state transfers of funds to the federal government.
As CBS noted:
Officials are looking for money that flows through Sacramento to the federal government that could be used to offset the potential loss of billions of dollars’ worth of federal funds if President Trump makes good on his threat to punish cities and states that don’t cooperate with federal agents’ requests to turn over undocumented immigrants, a senior government source in Sacramento said.
California, which is $400 billion in debt, is considered a “donor state,” which pays more tax than it receives in federal funding.
As noted by Breitbart News, federal funds help many institutions in California, which include, “Military bases, K-12 schools, public colleges and universities (federal funds, student loans), airports, ports, and federal contracts with technology and defense companies.”