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| California faces huge multi billion dollars 💰 Of deficits , now Gov. Newsom is Taking a Slippery Slope to fight Trump. |
CALIFORNIA Gov. NEWSOM'S California is a sinkhole of high taxes, regulations, that is broke with a huge yearly deficit, lost revenue. But TRUMP has set the ball rolling on Tariffs as we explained in our last two blog posts . Gavin Newsom it's slick hair jell Governor is now suing the Trump Administration over tariffs. You SHOULD guess why ? The trade war between China , the rest of the world could crash California revenues on state exports . On top of a lawsuit against Trump. Gov. Newsom is seeking trade deals and exemptions from international tariff reprisals. BUT, No state can establish international trade policy independent of the federal government, so I'm not sure how this is supposed to work. The state is also facing a budget shortfall and doesn't want to tax billionaires.Perhaps it could be sold as West Coast billionaires bypassing for their own commercial interests. Perhaps a greedy few break alliance with federal tariffs when they see paper or logistical advantage they can access. The lawsuit is Newsom’s most direct legal challenge to Trump’s agenda since the president retook office in January. The move instantly reignites California’s war with Trump and cements its place atop the resistance, after Newsom spent months appealing to the president for federal disaster relief. It’s also notable as a unilateral challenge, underscoring the singular importance of the issue in California. Bonta has worked closely with other blue states on previous lawsuits challenging Trump’s immigration policies and federal funding cuts.Newsom said that the tariffs had already cost the state billions of dollars in inflated costs and supply-chain disruptions, and that he was particularly concerned about the vulnerability of California farmers to the retaliatory trade policies of other countries. Newsom and Bonta’s argument targets the International Economic Emergency Powers Act, the law Trump is using to impose tariffs without congressional approval. The two Democrats argue Trump lacks the authority to levy tariffs under the law, mirroring a similar case filed Monday by a group of U.S. businesses. California, which the governor's office said engaged in nearly $675 billion in two-way trade last year, stands to lose billions in state revenue under Trump's tariff policies if international commerce declines and the stock market tanks. Mexico, Canada and China represent the state's three largest trade partners.
California is one big CON .
However, the fine print of Newsom’s budget
contains several indirect tax increases on businesses – mostly by
reducing offsets of taxable income – that over the next few years would
raise as much as $18 billion.Reports from the U.S. Internal Revenue Service (IRS) show that
716,948 Californians moved to another U.S. state or territory between
2020 and 2021. In that same time, 385,188 Americans moved into
California — making California’s net population loss 331,760 residents. And
those people took $29 billion in taxable income with them — or $183,737
on average. Meanwhile, those that moved into the state earned much less
at $87,000 on average. Newsom’s rush to the center-right looks out of place amid the positive polling coming Democrats’ way, and it highlights the real moral hazard that comes from being too quick to sell out your principles because of a few bad polls. That doesn’t mean Democrats should rely on Trump to fumble his way into a Democratic Congress in 2026. They will still need to make the case for Democratic leadership. But unlike Newsom seems to think, they don’t need to abandon their Democratic bona fides to get there. Newsom's cronies are also looking for ways to tax you more! is exploring a different funding method for road repairs: having
drivers pay for them, similar to how they pay for public utilities.Known as a road charge, drivers in California would pay a monthly fee based on the number of miles driven.As California transitions to a carbon emissions-free future, the system is considered an alternative to the current gas tax. “California lawmakers and Gov. Gavin Newsom are looking at a $2 billion deficit ahead of the next fiscal year, according to a report released Wednesday by the nonpartisan Legislative Analyst’s Office. It’s a dramatic improvement over last year’s budget picture, when the LAO initially projected a $68 billion shortfall. Lawmakers and Newsom took early action to trim spending, shrinking the deficit to about $47 billion for the current fiscal year. The LAO described the budget picture as “roughly balanced.” The turnaround is driven by a budget approved earlier this year, which cut $11 billion in spending and temporary revenue increases of $5.5 billion.” The news isn’t the $2B deficit, the news is that the cuts worked, nearly balancing the budget. Correct. To summarize what happened, CA made a *really* generous calculation (some would call it a historic fuck-up) on estimating incoming taxes back in 2022 or so that said they had $300bn in revenue coming because of early tax receipts, when in reality they had about $200bn coming. As an example of why this happened, on Jan 10, 2025 they have to submit their budget for July 2025-June 2026 (or approximately that), so you're basing the budget 8-20 months from now on your 3rd quarter tax receipts, and COVID was a nightmare on a state that heavily relies on income tax. Anyway...They have spent the last 2 years cancelling programs that hadn't started, scaling back others that had, shrinking existing programs, cost-cutting in some areas, pulling money out of rainy-day funds, and a little bit of creative accounting to shrink the deficit because they're required in the state constitution to pass a balanced budget. So in 3 years they'll have gone from a $100bn deficit to a $2bn deficit, which is less than 1% of the expected revenue the state is expected to bring in. I mean, while I think the traitorous way to define Newdom, is heading the country, I can understand the argument that Newsom is a traitor to the direction Trump is taking the country. In the strictest definition of the word, it fits. That being said, when the actions of the country are unjust, unfair, and unconscionable, the country would be better off if we were all traitors. I'd argue tha betraying the orders of a criminal president are what's best for everyone.
