Blue states’ plan for 100% tax on Trump’s ‘anti-weaponization’ payouts not as easy as it looks

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Democrats in blue states are coordinating their response to the $1.8 billion Justice Department fund, but could face legislative and legal roadblocks.

New York Gov. Kathy Hochul (D) signaled she is open to legislation that would impose a 100 percent state income tax on payouts from the federal government's planned "anti-weaponization" fund. | Julia Demaree Nikhinson/AP

Key Democrats in blue states are landing on a common idea — if their residents receive payouts from the Trump administration’s planned “Anti-Weaponization Fund,” they’ll tax all of it.

State lawmakers are working together and sharing legislative text in hopes of levying a 100 percent income tax on any payments from the $1.8 billion fund, created through the settlement of President Donald Trump’s lawsuit against the IRS. And their governors are taking interest, with California Gov. Gavin Newsom endorsing the proposal Wednesday and New York’s Kathy Hochul signaling Thursday she’d be open to it as well.