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.
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.
“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,” Bores said in a video posted on X.
“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. According to a draft memo to the State Assembly, the bill is intended 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.”
“We can’t stop Trump from breaking the law in Washington,” Bores said in an emailed response to NBC News.
“But we can decide that in New York, money you got for attacking American democracy is fully taxable.”
The White House referred questions about the proposed bill to the Justice Department, which did not immediately respond.
The proposal comes after the Justice Department announced the creation of the “anti-weaponization” fund as part of President Donald Trump’s settlement with the IRS.
The department said the fund would be established “in exchange” for Trump dropping his $10 billion lawsuit against the IRS, along with other claims related to the 2022 search of Mar-a-Lago and the Russia investigation tied to the 2016 election.
The department said the fund would create a “systematic process to hear and redress claims of others who suffered weaponization and lawfare.”
The fund has faced bipartisan criticism and several lawsuits since it was unveiled. Sen. Ted Cruz, R-Texas, said about half of Senate Republicans raised concerns about the fund during a closed-door meeting with Attorney General Todd Blanche. House Democrats have described it as a “slush fund” that Trump could use to reward allies, including people charged or convicted in connection with the Jan. 6, 2021 attack on the Capitol.
Trump pardoned the vast majority of Jan. 6 rioters shortly after taking office. According to databases compiled by NPR and Seton Hall University School of Law, about 80 to 90 of those involved were from New York state.
If Bores’ bill passes, those New York residents would face a 100% state income tax on any payments they receive from the fund.
“This bill ensures that no New York resident will retain any part of those distributions,” the draft memo says.
The memo argues that the payments should not be treated as ordinary compensation because they are not the result of an adversarial proceeding, findings by a neutral adjudicator, or a legal determination made outside the president’s circle of appointees.
Bores’ proposal resembles legislation introduced last week by Democratic members of the House Ways and Means Committee.
That bill, called the Slush Fund Act, would impose a 100% tax on any payout a sitting president receives from suing the US government.
Rep. Jimmy Panetta, D-Calif., said the measure was designed to ensure that taxpayers do not end up funding settlements paid to a sitting president.
California Gov. Gavin Newsom has also proposed a similar 100% tax on payments received by residents of his state.
Vice President JD Vance defended the fund on Tuesday, saying that “anybody can apply,” including, hypothetically, former US President Joe Biden’s son Hunter Biden.
The first person to file a claim, however, was Michael Caputo, a political operative and longtime Trump ally.
Caputo is seeking $2.7 million in restitution, claiming he was targeted by “Crossfire Hurricane,” the FBI investigation into whether Trump’s 2016 campaign colluded with Russia.
The US Senate Select Committee on Intelligence later found that Russian President Vladimir Putin had tried to influence the 2016 election in Trump’s favor.
