California to impose 100% tax on Trump’s January 6 ‘slush fund,’ governor says

By Jasper Ward

May 27 (Reuters) – California Governor Gavin Newsom announced on Wednesday that he would impose a 100% tax on payments distributed to victims of political “proliferation” allegations under the Trump administration’s nearly $1.8 billion fund.

“One of the things that I think we’re going to try to do… tax it 100%. Anyone who receives any of these funds from California, we want to tax 100% of that income, and that’s an action the state of California can take,” Newsom said. “This is an action we look forward to taking.”

The governor’s press office described the $1.776 billion fund as a “secret fund” in a post on social media.

Newsom did not specify when the state would begin implementing the tax.

The White House and the Justice Department did not immediately respond to requests for comment.

The fund was announced last week as part of a legal settlement with the Internal Revenue Service after US President Donald Trump sued the agency over the leak of his tax returns to the media.

Trump pardoned more than 1,500 Jan. 6 defendants last year. Some are now counting the cost of prosecutions, prison sentences and lost businesses, hoping for compensation for abuses by the Justice Department under former President Joe Biden.

This unprecedented move is currently facing a legal challenge from two police officers who defended the US Capitol from rioters on January 6, 2021.

Democrats and some Republicans have questioned the legality of the fund as part of the agreement that “forever prohibits” the IRS from auditing past tax claims by Trump, his relatives and his businesses.

“Can (the fund) potentially compensate someone who assaulted a police officer, pleaded guilty, was convicted, was pardoned, and now we’re going to make them pay for it? That’s ridiculous,” said Republican Sen. Thom Tillis of North Carolina.

(Reporting by Jasper Ward in Washington; Editing by Stephen Coates)