California
Whistleblower Seeks To Determine If Hunter Biden Paid California Taxes

Hunter Biden, son of US President Joe Biden, arrives at court for his trail on tax evasion in Los … [+]
Thanks to the presidential pardon from his father, Hunter Biden will no longer have to worry about the federal charges he was facing for failure to pay federal income tax on millions of dollars in earnings. President Joe Biden’s December 1 pardon does not, however, immunize his son from prosecution for failure to pay state income tax. Whether or not Hunter Biden fulfilled his state tax obligations to California is a question now being pursued by a public whistleblower.
Hunter Biden was a resident of California, home to the highest top marginal income tax rate in the country at 13.3%, during the years for which he has pled guilty to federal tax evasion. While media coverage has focused on unmet obligations to the IRS, the prospect of unpaid state tax liabilities is a topic that has never received much attention. In early December, James Lacy, president of the United States Justice Foundation, filed a public complaint (Case Number 12024-14638) with the California State Auditor calling for an investigation of the California Franchise Tax Board in order to determine whether Hunter Biden filed and paid state taxes for the years he has pled guilty to federal tax evasion.
Given the amount of income on which Hunter Biden failed to pay federal taxes, it’s a potentially large sum of money that he also might have neglected to pay to the government of California, a Democrat-run state where taxpayers are on the hook for an estimated trillion dollars-worth of unfunded public pension liabilities and where employers were recently hit with a payroll tax hike triggered by Governor Gavin Newsom’s (D-Calif.) decision to not repay unemployment insurance loans taken out from the federal government during the pandemic.
“Californians who file their tax returns and timely pay their taxes deserve to know whether or not Hunter Biden has received any special treatment from the Franchise Tax Board regarding his tax liability,” said Lacy. “I am hoping my Whistleblower Complaint will draw attention to this issue and bring some transparency to whether our state tax system has acted fairly.”
“If Hunter Biden failed to pay federal taxes, it’s reasonable to suspect he also failed to pay applicable state income taxes for those years,” says Ryan Ellis, an IRS-enrolled agent. Lacy also called on the Governor to act, saying “Newsom should also reveal to California taxpayers whether or not Hunter Biden was secretly ‘pardoned’ from state tax liability and enforcement as well.”
California Combines High Tax Rates With Muscular Collection
Aside from the nation’s highest state income tax rate, California has long been considered the most aggressive state in the nation when it comes to taxing foreign-sourced income. “Unfortunately for the President’s son, not only did he face the highest state income tax rate, he was also dealing with a state whose tax law has the longest and most aggressive arm,” Ellis said. “Comparatively speaking, California is the most litigious state I have seen in terms of chasing people down for money. Only New York rivals them.”
“It doesn’t matter if the income was coming from the former Mayor of Moscow, a Chinese private equity firm, or a Ukrainian gas company, California tax obligations are global and would’ve applied for the years in which Hunter Biden was a Golden State resident,” added Ellis, who runs his own tax preparation business and is president of the Center for a Free Economy.
The Department of Justice noted in a September 5 press release that “Hunter Biden engaged in a four-year scheme in which he chose not to pay at least $1.4 million in self-assessed federal taxes he owed for tax years 2016 through 2019 and to evade the assessment of taxes for tax year 2018 when he filed false returns.” While Hunter Biden won’t face repercussions for skipping out on those federal tax obligations thanks to the pardon from his father, that doesn’t shield him from state level prosecution for failure to pay taxes to California.
Why would a person pay state taxes on income for which it’s known they did not pay federal taxes owed? That question and the desire to answer it is behind the complaint recently filed with the State Auditor. Fortunately for Hunter Biden, California tax authorities and the California press corps have thus far demonstrated little interest in answering that question.
Hunter Biden also doesn’t have to worry about the most recent state wealth tax proposal introduced Sacramento. That’s because Governor Newsom confirmed earlier this year that he opposes the latest wealth tax bill introduced by California legislators. That should be welcomed news for Hunter Biden, who purchased a $142,000 sports car with funds provided by a Kazakh businessman, and who received a 3.16 carat diamond from a Chinese businessman, both of which would be prime targets of the sort of wealth tax sought by some California lawmakers.
In his 2023 State of the Union Address, President Biden promoted his effort to make “the wealthiest and the biggest corporations begin to pay their fair share. That message was echoed throughout 2024 by Vice President Kamala Harris (D), Senator Chuck Schumer (D-N.Y.), and other prominent Democrats. Any politician who wants to continue calling for stricter gun control and higher tax burdens on the rich, however, will have a hard time doing so in the future if they declined to comment when the President’s son was let off the hook for failing to pay taxes on millions in income and violating of gun laws.

California
Southern California reservoirs may get a boost

A late-season winter storm could give Southern California a boost in snowpack that will benefit the region’s water supply following below-average snow levels during the winter.
Newsweek reached out to the California Department of Water Resources (DWR) via email for comment on Friday.
Why It Matters
After an underwhelming early winter season, concerns grew that California’s reservoirs—key to managing drought and water supply for millions—would struggle to meet demands. However, recent storms helped change the outlook. The April snow survey of the year was conducted on March 28 by the DWR, and snowpack was measured at 90 percent of average statewide.
But Northern and Central California received more snow than Southern California, which remained “exceptionally dry,” according to DWR officials. Despite this, reservoir levels across California, including Southern California facilities, are trending above historical norms for this time of year.
What To Know
Typically, significant winter storms end before April 1, but this year’s unusual weather pattern is bringing additional snow to areas that had been trailing their seasonal averages.
The National Weather Service (NWS) issued a Winter Weather Advisory for the Southern California mountains, forecasting up to 7 inches of new snow accumulation in higher elevations through the weekend. The late April snowfall, combined with an already near-average Sierra Nevada snowpack, signals encouraging prospects for the state’s water supplies.
David McNew/Getty
Although the Sierra Nevada, which supplies about one-third of California’s water, did not exceed record highs this year, officials emphasized the significance of reaching near-normal levels after a dry start to the season. Despite being near average, this year’s snowpack is much below snowpack levels in 2023 and 2024.
In 2023, California snowpack peaked at 241 percent of average. The impressive snowfall alleviated California’s drought throughout the year. Snowfall peaked at 113 percent of average in 2024.
Even though this year didn’t perform as well as the past two years, the DWR reported on March 25 that State Water Project allocations were increased to 40 percent—up from 30 percent in December—thanks to a wet winter and improved hydrologic outlooks.
While conditions are significantly better than in recent drought years, officials caution that one good season doesn’t fix long-term water supply issues. Still, the replenishment is a welcome reprieve for a state where water security is a constant concern.
What People Are Saying
A DWR spokesperson previously told Newsweek: “The April 1 snowpack is an important benchmark for water managers who rely on snowpack and snowmelt runoff forecast data to plan for the amount of water that will flow into California’s rivers and reservoirs in the spring. The State Water Project and water districts use this data to plan for how much water will be available for urban and agricultural water users during the drier summer and fall months.”
The NWS office in Los Angeles, in its Winter Weather Advisory: “Be prepared for slippery roads. Slow down and use caution while driving. If you are going outside, watch your first few steps taken on stairs, sidewalks, and driveways. These surfaces could be icy and slippery, increasing your risk of a fall and injury.”
What Happens Next
The advisory will remain in place until Sunday morning. It remains unclear if more late-season winter storms will move through Southern California before the arrival of warmer temperatures.
California
California becomes world's 4th-largest economic superpower

OAKLAND, Calif. – If the state of California was its own country, it would be the fourth-largest economic superpower, according to the International Monetary Fund and the U.S. Bureau of Economic Analysis.
Gov. Gavin Newsom released the official results and sent a warning about why it could all be fleeting.
Most nations, including some bigger economies, will envy what so relatively few people have done and continue to do.
“California has not just a strong economy, but a major global presence,” said Sean Randolph.
Randolph serves as director of the Bay Area Council Economic Institute.
By the numbers:
California’s $1.4 trillion economy is fourth only behind the entire United States, China, and Germany and has now overtaken Japan, a nation with almost three times California’s population.
“We achieved that because Japan’s economy is actually shrinking,” said Randolph.
India, the world’s most populated country, is behind California’s economy, even though its population of 1.4 billion is 37 times that of the Golden State’s.
“They have a long way to go still to really achieve the kind of the environment for investment and regulation that they’re gonna need to grow faster,” said Randolph.
Newsom says at 6% annual growth, California’s economy is growing at a faster rate than the world’s top three economies, especially those of China and Germany, possibly eventually overtaking the latter.
But to do that, California must streamline and speed up processes for growth.
“It makes it hard to build anything. It makes it hard to build factories,” said Randolph.
One example: California captured very little from the CHIPS Act that funds domestic microchip production because of its high cost and the pace to build it in the state.
“We need to find a way to build more housing and reduce the cost of living and the cost of doing business here,” said Randolph.
The tariff effect
However, Newsom says the one thing that stands in the way of all this can be distilled down to one word:
“Tariffs, literally gutting the economy of the state and creating so much uncertainty. It’s going to take years and years. To wreck the economy, now the fourth-largest economy in the world, California,” said Newsom.
This story was reported out of Oakland, Calif.
California
California overtakes Japan to become fourth largest economy in world

The Californian economy has overtaken Japan’s to become the fourth-largest in the world by gross domestic product (GDP).
That is according to data from the International Monetary Fund (IMF) and the Bureau of Economic Analysis (BEA), a fact highlighted by the California governor’s office as it battles President Donald Trump’s trade policies.
The IMF put Japan’s GDP at $4.02 trillion in 2024. That compares to California’s GDP of $4.1 trillion for the same year, according to the BEA’s figures. It places the state behind only the United States, China, and Germany in global rankings.
“California isn’t just keeping pace with the world—we’re setting the pace,” Governor Gavin Newsom, a Democrat, said in a statement released Wednesday.
Why It Matters
California’s import-reliant economy is projected to be hit hardest by Trump’s tariffs, and Governor Newsom has been among the state leaders most vocal in criticism of the president’s trade policy. The governor has framed the new data highlighting California’s position as the nation’s principal economic powerhouse as evidence of the progress that could be jeopardized if Trump refuses to roll back his trade policies.
What to Know
Newsom has been heavily critical of Trump’s April 2 “Liberation Day” tariffs, in which the president announced “reciprocal” taxes on imports for other countries alongside a baseline tax of 10 percent on all global imports. The reciprocal tariffs have since largely been paused, with the notable exception of China.
According to recent analysis by the policy research firm Trade Partnership Worldwide, California is set feel the worst effects of the tariffs so-far announced by Trump. Estimates suggest the state could pay over $170 billion in import taxes in 2025, assuming that import demand remains flat from 2024.
Newsom said previously that California would seek to build new trading opportunities around the world to dampen the worst impacts of Trump’s trade policies.
“On behalf of 40 million Americans that live in the great state of California—the tentpole of the U.S. economy … our state of mind is around supporting stable trading relationships around the globe,” the governor said in a video message posted April 4.
California would be pursuing its own trading agreements with foreign partners, Newsom added, and seeking exemptions for California-made products.
Justin Sullivan/Getty Images
Governor Newsom filed a lawsuit against Trump on April 16 over the president’s use of emergency powers to carry out his tariff plans, which accused Trump bypassing Congress’ constitutional authority over trade policies. The suit cited Trump’s invocation of the International Economic Emergency Powers Act—a law granting the president broad authority to deal with foreign-born threats to national security through economic means.
“The IEEPA gives the President authority to take certain actions if he declares a national emergency in response to a foreign national security, foreign policy, or economic threat,” the governor’s office said in a press release. “The law, which was enacted by Congress in 1977, specifies many different actions the President can take, but tariffs aren’t one of them. In fact, this is the first time a president has attempted to rely on this law to impose tariffs.”
The allegedly unconstitutional implementation of the tariffs has been at the center of much of the criticism, including from Republican lawmakers, some of whom have decried these as de facto tax hikes for American consumers and producers.
On Wednesday, a dozen more states filed a suit with the U.S. Court of International Trade in New York City, challenging the president’s use of the IEEPA to impose tariffs. Listed as plaintiffs in the new suit are Oregon, Arizona, Colorado, Connecticut, Delaware, Illinois, Maine, Minnesota, Nevada, New Mexico, New York and Vermont.
The lawsuit was spearheaded by New York Governor Kathy Hochul and Attorney General Letitia James, who has frequently clashed with the administration over tariffs and various other policies.
What People Are Saying
California Governor Gavin Newsom said in a statement Wednesday: “California isn’t just keeping pace with the world—we’re setting the pace. Our economy is thriving because we invest in people, prioritize sustainability, and believe in the power of innovation. And, while we celebrate this success, we recognize that our progress is threatened by the reckless tariff policies of the current federal administration. California’s economy powers the nation, and it must be protected.”
Governor Newsom’s office posted to its website: “California’s economy is growing at a faster rate than the world’s top three economies. In 2024, California’s growth rate of 6% outpaced the top three economies: U.S. (5.3%), China (2.6%) and Germany (2.9%). California’s success is long-term –the state’s economy grew strongly over the last four years, with an average nominal GDP growth of 7.5% from 2021 to 2024. Preliminary data indicates India is projected to surpass California by 2026.”
White House spokesman Kush Desai, quoted by the BBC, said in response to the latest lawsuit, that the “administration remains committed to using its full legal authority to confront the distinct national emergencies our country is currently facing—both the scourge of illegal migration and fentanyl flows across our border and the exploding annual U.S. goods trade deficit.”
Desai told NBC News: “Once again, Democrats like Letitia James are prioritizing a witch hunt against President Trump over protecting the safety and wellbeing of their constituents.”
What Happens Next?
Most “Reciprocal” tariffs have been postponed, with the exception of China, for 90 days, a window the administration has said will allow nations to approach the U.S. for trading negotiations. A new minimum 10 percent tariff rate, which came into effect April 5, is still in place for goods coming from all countries.
President Trump on Tuesday said that the “very high” tariffs on Chinese goods would “come down substantially,” in the future, “but it won’t be zero.”
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