Treasury Secretary Scott Bessent accused California Governor Gavin Newsom of plotting what amounts to criminal tax evasion, warning that the Democrat governor is endangering both the fiscal integrity of the nation and the legal standing of countless California businesses.
“Governor @GavinNewsom is threatening to commit criminal tax evasion,” Bessent wrote.
“His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes.”
Governor @GavinNewsom is threatening to commit criminal tax evasion.
His plan: defraud the American taxpayer and leave California residents on the hook for unpaid federal taxes. (1/3) https://t.co/fn7ch7WwoC
— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025
The stunning accusation came after Newsom went full meltdown mode on Friday, threatening to withhold tens of billions of dollars in federal taxes from Washington, D.C. — after reports surfaced that President Donald Trump is preparing to cut federal funding to the far-left state over its radical policies and out-of-control universities.
Newsom’s tantrum comes after CNN reported that the Trump administration is planning a “full termination” of federal grants to California’s bloated university systems, specifically the University of California and California State University, in response to the institutions’ failure to combat rampant anti-American and antisemitic activity on their campuses.
“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, @realDonaldTrump,” Newsom wrote on X.
The radical idea would amount to an open rebellion against the U.S. Treasury, potentially placing businesses and payroll officials in direct violation of federal tax laws.
“I am certain most California businesses know that failing to pay taxes owed to the Treasury constitutes tax evasion and have no intention of following the dangerous path Governor @GavinNewsom is threatening,” Bessent continued.
“I would warn state officials, including payroll managers, that federal law attaches personal liability to an ‘attempt to evade or defeat tax.’”
I am certain most California businesses know that failing to pay taxes owed to the Treasury constitutes tax evasion and have no intention of following the dangerous path Governor @GavinNewsom is threatening.
I would warn state officials, including payroll managers, that federal…
— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025
Indeed, under federal law (26 U.S. Code § 7201), anyone who “willfully attempts in any manner to evade or defeat any tax” is guilty of a felony offense. Newsom’s suggestion could be interpreted as incitement to widespread lawbreaking—an extraordinary development from a sitting U.S. governor.
The Secretary of the Treasury didn’t stop there. In a final swipe, Bessent advised Newsom to ditch the radicalism and return to commonsense economic policy:
“@GavinNewsom’s comments are extremely reckless,” he wrote.
“Instead of committing criminal tax evasion, Governor Newsom should consider a tax plan for California that follows the Trump Tax Cuts model and reduces the onerous state tax burden to allow families to keep more of their hard-earned money.”
.@GavinNewsom’s comments are extremely reckless.
Instead of committing criminal tax evasion, Governor Newsom should consider a tax plan for California that follows the Trump Tax Cuts model and reduces the onerous state tax burden to allow families to keep more of their…
— Treasury Secretary Scott Bessent (@SecScottBessent) June 8, 2025
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