
Blue Press Journal (Opinion) – As the fifth-largest economy in the world, California is an economic powerhouse and a leader in national policy. However, despite its significant contribution to the nation’s wealth, the state receives only a fraction of its tax dollars back in funding for essential priorities such as healthcare, housing, climate resilience, and infrastructure. It’s time for California to take a bold step and establish the California Federal Tax Administration (CFTA) to collect and remit federal taxes, thereby gaining control over its own wealth and leveraging its economic power.
| Category | Amount |
|---|---|
| Annual Tax Revenue | $400 billion |
| Federal Funding Received | $30 billion |
| Net Outflow | $370 billion |
The CFTA would be a new state agency responsible for collecting all federal personal and corporate income taxes from California residents and businesses and then remitting the funds to the federal government. This move would not only simplify the tax collection process but also provide California with a level of autonomy and bargaining power in its dealings with Washington. As noted by Governor Gavin Newsom, “California is not just a state, it’s an economic engine that drives the nation. It’s time we take control of our own destiny and ensure that our tax dollars are being used to benefit our own citizens.“
By instituting the CFTA, California would be able to highlight the significant outflow of its wealth to the federal government, making it clear that the state is subsidizing the rest of the nation. This would be a powerful statement, as Kamala Harris has noted, “California is a donor state, meaning we give more to the federal government than we receive in return. It’s time we change that dynamic and ensure that our tax dollars are being used to benefit our own state and its residents.”
The benefits of establishing the CFTA extend beyond political leverage. The state would have a system to ensure government continuity and preserve revenue, offering an advantage during economic downturns or funding uncertainties. As former Governor Jerry Brown stated, “California has always been a leader in innovation and progressive policy. Establishing the CFTA would be a bold step toward controlling our economic destiny and ensuring our state’s long-term prosperity.“
It’s time for California to seize the tax leverage and establish the CFTA. This move would empower the state to negotiate with Washington from a position of strength. Californians must unite to demand that their elected officials take action, ensuring our state’s wealth benefits our citizens instead of subsidizing underperforming RED STATES. As Governor Newsom has said, “It’s time for California to take control of its own destiny and become the economic powerhouse it was meant to be.”









