Sherrill Could Withhold Federal Taxes As Governor: ‘Great Idea’

Democratic Governor-Elect Mikie Sherrill is open to the idea of not paying federal taxes in an effort to protest the Trump administration, she said in a recent podcast.

Last week, Sherrill joined late-night comedian Jon Stewart, along with Virginia’s Gov-Elect Abigail Spanberger, on his podcast “The Weekly Show with Jon Stewart.”

As the trio discussed governorship and their recent wins, Stewart floated the idea of a, potentially “drastic,” federal tax strike, to which Sherrill responded that she thinks about it “all the time.”

“I think that’s a great idea, I talk often about clawing back federal money,” she said. “As I say, and I think people here in New Jersey agree, if (the federal government is) not gonna run the programs, then what are we paying them for? It’s like, you're paying for a service, and they’re not delivering. So let’s stop paying for it.”

Since taking office, President Donald Trump's administration has slashed several federal programs, including mental health and substance abuse services, food aid (SNAP), education programs, and environmental agencies, to name a few.

Sherrill added that the “easiest place to start” with a federal tax strike would be in New Jersey’s courts, saying that there were “areas you can claw back and freeze,” but did not elaborate on logistics.

Sherrill also cited a similar attempt from California Governor Gavin Newsom, who suggested a federal tax strike over the summer. The idea never materialized.

Stewart mentioned the repercussions of a federal tax strike against the Trump Administration, which could result in a cessation of federal funding, termination of projects, or even legal ramifications. He also added that he believes Trump uses federal funding as “leverage,” saying that if a state doesn’t play by Trump’s rules, funding will be cut.

New Jerseyans paid an average $22,302 in federal taxes during the 2024 fiscal year, which is around $4,500 more than the national average.

In total, New Jersey forks over around $140.2 billion per year to the federal government, providing for around four percent of the country’s total tax revenue. Click here to see a breakdown of the average New Jerseyan's federal taxes.

“I would love to start to rework the federal taxation system,” Sherrill added.

Sherrill's tax strike idea, which has not been launched in any official or legal capacity at this time, is already being criticized by some New Jersey officials.

Senator Joe Pennacchio (R-26) "threw cold water on the idea," in a recent statement, saying that states, including New Jersey, are not permitted to withhold federal tax funds.

“States have no authority to withhold federal tax dollars and are legally obligated to uphold funding for federal programs, period,” said Pennacchio in a statement. “That being said, Governor-elect Sherrill, who ran on the Republican platform of affordability, can save consumers money on their high utility bills by eliminating the sales tax and Societal Benefits Charge. Rather than focusing on running partisan interference against the federal government, Democrats should turn their attention to deliver real, immediate relief for New Jersey families.”

To watch Sherrill's full conversation with Stewart, click here.

Editor's Note: This article has been updated with a quote from Senator Joe Pennacchio.