Tax Reallocation for State Compensation for Illegally Denied Federal Funds and Services
(This action is part of the Catalog of Legislative Actions.)
Description
Directs residents and resident-based businesses to remit the portion of their federal tax liability attributable to [State/Local Jurisdiction] income to the state government instead of the IRS. The state will use these funds to compensate for financial harms caused by unlawful federal actions, including withheld federal funding, denied services, and punitive financial retaliation. Excess funds will be forwarded to the federal government for legally authorized expenditures that remain consistent with constitutional governance.
This provision is enacted as part of the Restoration of Constitutional Governance and Protection of the People Act, either initially or by amendment, and the general provisions of the Act apply to it, including as to jurisdiction and time bar. See Variations.
Characteristics
Form
Resolution, Legislation, or Executive Action
Legislation
Pressure Level
How confrontational: Low, Medium, or High
High
Pressure Mode
How action exerts pressure against unlawful federal action
Economic, Public Mobilization
Noncompliant
Whether directly defies unlawful federal directives: Yes, No, or Arguable
Yes
Participants Called Upon (state/local)
State or local entities involved, e.g., executive, agencies, judiciary, private entities, private individuals
Agency/-ies, Private Entities, Private Individuals
Financial Impact (state/local)
Financial cost or benefit of the action to the adopting jurisdiction: Expensive, Minor, Beneficial, Depends
Beneficial
Variations
Alternative versions of this action, such as expanded scope or different enforcement mechanisms
- Enforcement Mechanisms: The law may include penalties for noncompliance, incentives for participation, or automatic payroll redirection measures to ensure that individuals and businesses comply.
- Protections for Taxpayers & Businesses: The law may provide legal defense funding, indemnification, or state-led non-cooperation with federal enforcement against individuals or businesses that comply.
- IRS Disruption Measures: The law may include provisions designed to exploit IRS resource constraints, making enforcement of federal tax collection impractical or legally challenging.
- Interstate Cooperation: The law may include provisions for multi-state or regional coordination to strengthen legitimacy and enforcement, including agreements to recognize each other’s tax remittance programs.
- Alternative Use of Excess Funds: Instead of forwarding excess funds to the federal government, a variation of this law could allow the state to reallocate them to support state priorities, return them to taxpayers, or establish legal defense funds.
- Voluntary Participation with Incentives: Instead of requiring participation, this variation would incentivize taxpayers and businesses to remit their federal tax payments to the state by offering legal protections, tax credits, or other benefits while ensuring safeguards against federal retaliation.