General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTime for the Blue donor states to stand up to this tyranny and time for the Red dependent states to feel the pain.
There is a movement going on where a number of blue states who subsidize the federal government and by extension red states are taking steps to withhold money from the feds if Donnie Rotten has illegally cut off federal revenue.
Several states, predominantly led by Democrats, are exploring ways to withhold payments to the federal government as a countermeasure against potential federal funding freezes, particularly those attributed to the Trump administration. This approach is described as a novel and untested gambit.
States with such legislative proposals:
Connecticut: Has introduced legislation to withhold federal payments under certain circumstances.
Maryland: Similar to Connecticut, it's considering measures to withhold federal payments.
New York: Has also introduced bills to withhold federal payments.
Wisconsin: Bills have been introduced, but their progress is uncertain due to the state's Republican-controlled legislature.
Washington: Lawmakers are in the process of drafting similar legislation.
California: Governor Gavin Newsom has suggested the possibility of withholding federal taxes if federal funding is reduced.
I say, go for it. Stop paying for this tyranny of the minority.
Top Donor States:
California: Contributed $83 billion more than it received, according to a report from the Governor of California.
New York: Contributed $89 billion more than it received, according to USAFacts.
New Jersey: Contributed $70 billion more than it received, according to USAFacts.
Massachusetts: Contributed $9 billion more than it received, according to the Baltimore Sun.
Connecticut: Contributed $8 billion more than it received, according to the Baltimore Sun.
Colorado: Contributed $2 billion more than it received.
Minnesota: Contributed $725 million more than it received.
Delaware: While not in the top 10 by total contribution, USAFacts reports Delaware had the highest per capita net contribution at $10,505 in 2023.
Top Dependent States:
Alaska, Kentucky, Vermont, West Virginia, , Arkansas, Louisiana, Arizona, South Dakota, and Mississippi, according to USAFacts.
Eight out of nine voted for Donnie, let's see how they do without Blue State money!

FBaggins
(28,203 posts)California sends comparatively little to the federal government. California citizens pay quite a bit in taxes but it doesnt go through the state government on its way to the feds. Theres no way for the state to tell a corporation that it should send payroll withholding to the state instead of the IRS.
mwooldri
(10,650 posts)... then the state is perfectly able to not send the taxes to the feds.
Probably more symbolic but it's something.
FBaggins
(28,203 posts)When you go to file your taxes and find that the money withheld from your paycheck never went to the IRS - youre going to have a problem.
You still have the tax liability - your employer is effectively stealing from you.
MichMan
(15,305 posts)whopis01
(3,844 posts)If the employer does not withhold taxes or does not submit the taxes that were withheld, the employee is still responsible to pay those taxes.
The employee would have the right to bring legal action against the employer in this case. And if they notify the IRS (under normal circumstances), the IRS will investigate the employer. However, it is still the employee's responsibility to pay the taxes.
I put the "under normal circumstances", because I feel fairly confident in this situation the Trump administration would just tell the IRS to go after the employees so he can blame the Democratic governors and administrations in those states for the mess.
SADAR
(66 posts)thing again, cos infighting will certainly help the Democrats....sarcasm!!!
Beartracks
(13,946 posts)WhiskeyGrinder
(25,169 posts)tritsofme
(19,336 posts)Would still owe the federal government what they owe, plus interest and penalties.
Their federal tax liability doesnt go away just because a state decided to seize and steal the money. .
purple_haze
(260 posts)I've heard in decades
CincyDem
(7,141 posts)At some point, the current system becomes taxation without representation. Unfortunately there is no way for states to intervene in the cash flow from individual to DC.
Ultimately, its something that would have to be settled in the courts.
Did I actually just imply an effective well reason judiciary. Sometime I make myself laugh so hard it hurts.
MichMan
(15,305 posts)Take LA County for example.
Why should a city like Beverly Hills pay way more in taxes to the state of California than it receives in benefits compared to taker cities like Compton ? Beverly Hills should be able keep its taxes for itself, right?
kkmarie
(223 posts)Why do we have to pay taxes for services/agencies that have been either eliminated or reduced to non functioning?
Is Krasnov just going to start pocketing the money?
I was googling the exact tax cuts for us regular people. And I found this on the Fidelity website I had not heard of this being in the bbb.
Sorry if everyone heard of this before.
Trump accounts. The bill proposes a savings account called the Trump account fundable up to $5,000 a year on an after-tax basis for children, so there is no upfront tax benefit. Contributions can be made by parents, relatives, or any other taxable entity, according to the legislation, until age 18, at which point half of the funds could be withdrawn and any gains would be taxed at the long-term capital gains tax rate, so long as the money is used for qualified expenses, which include education costs, the down payment on a first home, or as capital to start a small business. After age 30, the remainder of funds could be withdrawn for any purpose. Withdrawals would be taxed at ordinary income rates if spent for other purposes prior to age 30. Parents of newborns born between January 1, 2025, and January 1, 2028, would also qualify for $1,000 in federal seed money to start the account. Although not income restricted, Trump accounts are similar to Connecticut Baby BondsOpens in a new window, which invest $3,200 into accounts for newborns of lower income parents.
https://www.fidelity.com/learning-center/personal-finance/one-big-beautiful-bill#:~:text=The%20standard%20deduction%2C%20which%20doubled%20in%202017%2C,single%20filers%20and%20$32%2C600%20for%20married%20filers
The Wizard
(13,234 posts)are in slave states and named after Confederate heroes. Those major military bases keep red states from going broke. Civil War Reconstruction has been in effect for at least 100 years past its expiration date.
Move the bases in slave states to the states that contribute most to the economy and red states will collapse.
Let them stew in their own juices.
MichMan
(15,305 posts)SSJVegeta
(998 posts)RedWhiteBlueIsRacist
(726 posts)
MichMan
(15,305 posts)The vast majority of all revenue sent to the Federal government is from individual income taxes. The so called donor states pay out more to the Federal treasury than they receive, because their residents are on average, wealthier with much higher incomes. Thus they pay more taxes compared to states with lower incomes and more poverty.
Is the position therefore that the wealthy are overtaxed, and that people should only receive the amount of benefits equal to what they pay in?