California gubernatorial candidate Steve Hilton discusses how he would look to overturn the laws in California protecting transgender competitors on ‘The Bottom Line.’
Treasury Secretary Scott Bessent has accused California’s Gov. Gavin Newsom of threatening to commit tax evasion after he threatened to stop paying the “over $80 BILLION” in taxes the state pays to the federal government.
Newsom’s threat comes amid President Donald Trump’s vow to impose large-scale fines on the state of California for allowing a biological male to compete in girls’ sports and win multiple state titles.
“A Biological Male competed in California Girls State Finals, WINNING BIG, despite the fact that they were warned by me not to do so,” Trump wrote on Truth Social last week. “As Governor Gavin Newscum fully understands, large scale fines will be imposed!”
In response to Trump’s threat, Newsom made one of his own.
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Treasurer Scott Bessent said California Gov. Gavin Newsom’s threat to hold federal tax payments from the state would constitute federal tax evasion. (Getty Images / Getty Images)
“Californians pay the bills for the federal government,” Newsom said on X. “We pay over $80 BILLION more in taxes than we get back. Maybe it’s time to cut that off, @realDonaldTrump.”
If the California governor were to follow through with his threat, Bessent said in a Sunday post on X that it would constitute tax evasion.
Newsom’s plan would defraud American taxpayers while leaving California residents on the hook for any unpaid federal taxes, the treasury secretary wrote.
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“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 wrote. “I would warn state officials, including payroll managers, that federal law attaches personal liability to an attempt to evade or defeat tax.”
“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,” he continued, calling Newsom’s plan “extremely reckless.”
Newsom’s office did not immediately respond to FOX Business’ request for comment.
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Trump’s post targeting California’s stance on trans athletes came days after biological male AB Hernandez competed in the state competition, taking first place in the girls’ high jump and triple jump, and second place in the long jump.
President Donald Trump said California would face “large scale fines” for allowing a biological male to compete in the girls’ state track and field competition. (Anna Moneymaker/Getty Images / Getty Images)
The California Interscholastic Federation (CIF) amended its rules to accommodate trans athletes, allowing four finalist spots instead of three in the events that Hernandez competed in if Hernandez earns a medal. The temporary change granted the female athletes qualification and podium finishes they would have earned had a biological male not competed and placed in those events.
This resulted in Hernandez having to share podium spots with the female athletes who finished one spot behind Hernandez after the finals on Saturday.
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The Department of Justice (DOJ) announced a federal probe into California over potential Title IX violations regarding its policy allowing trans athletes in girls’ sports. The state had already been under a Department of Education investigation over the issue since February.
Fox News’ Jackson Thompson contributed to this report.