New york: A New York state lawmaker on Thursday proposed a 100% state income tax on residents who receive money from the Trump administration's controversial $1.8 billion 'anti-weaponization' fund, according to a report by NBC News.
According to Anadolu Agency, Assemblyman Alex Bores, a Democrat who represents part of Manhattan, said the measure is aimed at preventing New Yorkers from profiting from what he described as an illegal political payout. Bores stated, "It's simple, if you're a New Yorker and you take from this illegal slush fund, New York state will tax 100% of it." He further emphasized his stance by stating, "If you storm the Capitol and you take from this slush fund, too bad we're taking it."
Bores is drafting legislation called the Anti-Insurrectionist Act. The bill, as outlined in a draft memo to the State Assembly, aims to ensure that "no resident of this State is enriched by what is, in substance, a publicly-funded political payout negotiated between the President and his own Administration." Bores expressed his determination in an email response to NBC News, mentioning, "We can't stop Trump from breaking the law in Washington, but we can decide that in New York, money you got for attacking American democracy is fully taxable."
The White House has deferred questions regarding the proposed bill to the Justice Department, which has not yet responded. The proposal follows the Justice Department's announcement of the 'anti-weaponization' fund, established as part of a settlement between President Donald Trump and the IRS, in exchange for Trump dropping a $10 billion lawsuit against the IRS and other claims related to the 2022 search of Mar-a-Lago and the Russia investigation.
The fund has faced criticism from both sides of the political spectrum and has been the subject of several lawsuits since its introduction. Sen. Ted Cruz, R-Texas, mentioned that about half of Senate Republicans expressed concerns about the fund during a private meeting with Attorney General Todd Blanche. Meanwhile, House Democrats have labeled it a 'slush fund' that Trump could potentially utilize to reward allies, including those charged or convicted in relation to the Jan. 6, 2021 Capitol attack.
If Bores' bill is enacted, New York residents who receive payments from the fund would be subject to a 100% state income tax on those payments. The draft memo asserts that these payments should not be classified as ordinary compensation since they do not result from an adversarial proceeding, neutral adjudicator findings, or a legal determination made outside the president's network of appointees.
Bores' proposal is similar to legislation introduced recently by Democratic members of the House Ways and Means Committee. Known as the Slush Fund Act, this bill would impose a 100% tax on any payout a sitting president receives from suing the US government. Rep. Jimmy Panetta, D-Calif., noted that the measure is intended to prevent taxpayers from funding settlements paid to a sitting president. Additionally, California Gov. Gavin Newsom has proposed a similar 100% tax on payments received by residents of his state.
Vice President JD Vance defended the fund, suggesting that "anybody can apply," including, hypothetically, Hunter Biden, son of former US President Joe Biden. The first claim was filed by Michael Caputo, a political operative and Trump ally, who is seeking $2.7 million in restitution, alleging he was targeted by 'Crossfire Hurricane,' the FBI's investigation into potential collusion between Trump's 2016 campaign and Russia. The US Senate Select Committee on Intelligence later determined that Russian President Vladimir Putin had attempted to influence the 2016 election in Trump's favor.