California Governor Gavin Newsom is taking direct aim at President Donald Trump's alleged compensation efforts related to the January 6 Capitol attack. In a blunt post on X, Newsom threatened to tax any payouts from what he called Trump's "January 6 slush fund" at 100%.

"If you get a payout from Trump's January 6 slush fund, California will tax it at 100%," Newsom wrote. He added, "People who assault cops and overthrow democracy don't deserve a taxpayer-funded payday."

The threat comes amid broader Democratic criticism of Trump's $1.8 billion fund, which some lawmakers say is being used to reward supporters involved in the January 6 riot. Last week, former Secretary of State Hillary Clinton accused Trump of using taxpayer money to compensate riot defendants beyond the pardons he has already issued. House Minority Leader Hakeem Jeffries also criticized the fund, calling it a misuse of public money that should instead go toward affordability for Americans. Senator Adam Schiff of California described reports of an IRS-related legal settlement as an effort to benefit Trump allies at public expense, calling it "extreme corruption."

Newsom's tax vow is not the only financial controversy brewing in California. A labor union has successfully gathered over 1.5 million signatures to place a billionaire tax on the November ballot. The measure would impose a one-time 5% tax on residents with a net worth above $1 billion, aiming to raise roughly $100 billion for Medicaid and food assistance programs.

The proposed tax has drawn sharp criticism from prominent investors. Kevin O'Leary called the plan "un-American," warning it would drive wealth and businesses out of California and trigger lengthy court battles over its legality and valuation methods. Chamath Palihapitiya also expressed concern, arguing the tax could expand beyond billionaires over time and might be altered without voter approval, effectively becoming a broader tax on more Californians.

Newsom's 100% tax threat on Jan. 6 payouts is likely to face legal challenges, but it signals the state's aggressive stance against Trump's compensation efforts. Whether the tax is enforceable remains an open question, but the message is clear: California is not going to let any Jan. 6-related payouts go untaxed.