The cuts to several states come amid an escalating fraud fallout fueled by a dubious YouTube investigation of Minnesota day cares.
The Trump administration on Monday said it had slashed billions in social services funds to a handful of blue states as part of its escalating response to new and unproven fraud allegations in Minnesota.
The Department of Health and Human Services will freeze $10 billion worth of federal grants to California, Colorado, Illinois, Minnesota, and New York, an HHS official told HuffPost, confirming news first reported by The New York Post.
It’s not clear whether the freeze was inspired by specific fraud allegations or solely for political reasons. Officials did not immediately provide a public explanation.
You are correct. Unfortunately, state governments don’t have a hand in federal taxation. Employers typically withhold the estimated amount from employee’s paychecks, and at the beginning of each year everyone submits a tax form. If they paid over their obligation, they get a refund; if they underpaid, they owe money.
Even if someone opts out of tax withholdings, they’re responsible for sending their taxes to the federal government each year; typically through a third-party for-profit business (especially now that Republicans trashed the recent IRS pilot which allowed people to file their taxes directly to the federal government for free).
The only solution would be for every resident of that state to individually opt out of federal tax withholdings from their employer, but then they’d be individually liable for submitting their taxes each year. While the IRS doesn’t currently have the staffing to handle that if everyone does it, that would require a level of collective trust-in-ones-fellows that simply doesn’t exist in this era.
It would be much better if states could offer their protection, but apparently states can’t even keep ICE out so the IRS would be no different…
I already do this because they seize my refund to pay off student loans.
That sucks, dude