The California Governor said his administration will not recognize the ‘Trump Accounts’ tax-deferred status at the state level – meaning residents in California will be on the hook for additional state taxes on accounts held by minors as young as five years old.
Critics say this is the latest example of Newsom’s overreaching government, prioritizing revenue grabs and fueling fraud in the state, saying
“What kind of leader would impose taxes on a savings account meant for a child’s future?”
Trump Accounts were included in the “One Big Beautiful Bill Act” signed into law last year.
They function as traditional IRAs for children under 18, offering tax advantages to encourage long-term savings.
This isn’t the only example of how Newsom’s California ignores legal protections, even targeting active-duty military personnel.
In one example, an active-duty U.S. Marine stationed in California under PCS orders – non resident – had funds frozen in his Navy Federal account. The state claimed that he owed state income tax even though he already filed his taxes and was not a California resident.
Under the Servicemembers Civil Relief Act (SCRA), military pay is exempt from state taxation for non-residents.
When he tried to fight it, sent his W-2s and spoke with representatives, he said they either hung up on him or ignored his voicemails.
Another example comes from a Department of Defense family who was hit with a $20,000 garnishment—even though they already paid.
