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
Newsom to impose 100% tax on California payees of Trump’s $1.8bn fund
California governor Gavin Newsom is looking to thwart Donald Trump’s $1.776bn “anti-weaponization fund” by imposing a 100% tax on any payout received by state residents.
In May, the Department of Justice (DoJ) announced a fund to compensate alleged “victims of lawfare and weaponization”. It’s unclear who qualifies under this category.
The fund was the product of a settlement reached between Trump and the Internal Revenue Service (IRS) – the agency the president sued over his leaked tax returns.
Critics, including Newsom, have slammed the fund as a “boondoggle” designed to divert money to Trump’s allies. Speculation has swirled that its benefactors could include the individuals who were arrested in the 6 January 2021 siege of the US Capitol. The Trump administration has described the rioters as patriots and since pardoned many who were charged in relation to the attack.
“People who assault cops and overthrow democracy don’t deserve a taxpayer-funded payday,” Newsom wrote in a Wednesday post to X, after announcing his plan at a news conference.
Five people appointed by the US attorney general will preside over the $1.776bn, which will be funneled from a fund typically used to pay court judgments.
Todd Blanche, the acting US attorney general, characterized the fund as an avenue “to make right the wrongs that were previously done”. Quarterly reports on who has received monetary relief and in what amount will be sent to the attorney general. Claims will not be processed after 1 December 2028, at which point any remaining amount will be returned to the federal government, according to the DoJ.
The DoJ did not immediately respond to a request for comment on how it would address Newsom’s proposed tax.
It’s the latest in a longstanding bitter feud between Newsom and Trump.
The two politicians have often traded jabs in the press and over social media. They are at odds on a number of issues in the Golden state including the federal deployment of ICE agents, how healthcare fraud has been handled and election integrity.
California
Opinion | Our house burned down but our mortgage didn’t. California fire survivors need time
By Rachel Jonas and Robert Fagnani, Special for CalMatters
This commentary was originally published by CalMatters. Sign up for their newsletters.
Guest Commentary written by
We were supposed to celebrate our younger son’s first birthday in our backyard on January 11th, 2025. Instead, four days before his party, we watched the Palisades fire take our home. We’d packed what we could, put our kids in the car and drove to Tennessee to live with family because we had nowhere else to go.
Our house is gone. Our older son’s preschool is gone. The library, the restaurants, the small routines that made up a life are all gone. What remains is a mortgage on a property that no longer exists and a rebuilding process that every expert we’ve spoken to says will take two to four years, minimum.
We did not expect to become advocates. But in the months after the fire, we kept running into the same impossible questions from other families — questions about forbearance, credit and what their mortgage servicer was actually required to do. Nobody had clear answers, so we founded Disaster Mortgage Relief and have spent the past year listening to hundreds of families across the Palisades and Altadena navigate a financial system that was simply not built for what we are living through.
That experience is what brings us to Assembly Bill 1847. The California Bankers Association recently argued that this bill — which would extend and strengthen mortgage protections established under last year’s fire emergency mortgage relief law, AB 238 — could end up restricting access to credit.
We want to engage with that, because we think it gets the situation almost entirely backwards.
AB 238 gave people whose homes burned up to 12 months of mortgage forbearance. But the rebuilding timeline in the Palisades and Altadena is not 12 months. Debris removal, utility restoration, insurance disputes, permit approvals, contractor shortages and construction inflation have made this a multi-year process for virtually everyone we work with.
The original forbearance framework was built around a recovery timeline that does not exist in reality. Now that fire survivors’ forbearance periods are expiring, we are watching the consequences in real time: Families who were current on their mortgages before the January 2025 fire — who followed every rule — are seeing their credit scores fall by 200, 300, even 400 points.
Some are being pushed toward foreclosure. Some are being handed balloon payments of $100,000 or more, due at the exact moment they are trying to finance construction.
This is not a story about irresponsible borrowers. These are teachers, small business owners, young families who made these neighborhoods what they were. Most still desperately want to come home. But the financial pressure is forcing many of them out for good.
We understand lenders need predictable rules and functioning credit markets. California cannot solve one crisis by creating another. But the greater threat to future lending is not temporary forbearance; it is mass borrower failure, collapsing credit, abandoned rebuilds and neighborhoods that never recover.
AB 1847 does not forgive debt. It does not eliminate lender rights. It does not tell banks they won’t be repaid. It allows payments to be deferred during rebuilding and moved to the loan’s back end.
The CARES Act, which gave borrowers of federally-backed mortgages up to 360 days’ relief during the COVID-19 pandemic, demonstrated that similar structures were operationally feasible on a national scale.
For many families, freeing up two or three years of principal and interest and applying that money to construction is the difference between rebuilding and permanently leaving. It requires no taxpayer money; it simply restructures debt that already exists so families have a realistic chance to come home.
In our case, my family is still in Tennessee, saving every dime we can to hopefully afford to rebuild the home we lost.
Climate events are no longer temporary and localized. They destroy entire communities at once and displace families for years. The financial infrastructure around homeownership needs to catch up to that reality.
The question before California is simple: when disaster survivors are trapped between a destroyed home and a mortgage system that no longer matches modern recovery, will we force families into financial collapse or adapt the system to the world we now live in?
This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.
California
Tesla driver infamous for Southern California road rage attacks sentenced in Hawaii case
A Tesla driver infamous for a series of road rage attacks caught on camera in Southern California has been sentenced to seven years in prison after he was convicted in a similar case in Hawaii.
Videos from 2023 that went viral show a pipe-wielding man getting out of his Tesla and striking vehicles on Southern California roads.
Nathanial Radimak was arrested early that year for a series of attacks, was convicted in two road rage incidents and served time behind bars in California. Now he’s headed to prison again in Hawaii for a similar attack.
Two of Radmark’s Los Angeles-area victims reacted to the 40-year-old’s seven-year prison sentence, longer than even the prosecution requested.
“I feel that justice has finally been served,” said victim Beth Lamprecht during a press conference Tuesday.
“For years, there were pleas to keep this dangerous individual from hurting others. While those warnings went unheeded, today we finally have accountability,” she continued.
Those victims and attorney Gloria Allred argued that Radimak should not have been free in the first place.
He was sentenced to five years in prison in Los Angeles County and released after a year, according to the Department of Corrections.
Allred said he received credit for time served while awaiting sentencing and good behavior.
There are reports that Allred raised on Tuesday that Radimak was released early from California custody because of overcrowding.
He committed this latest attack in Hawaii while still on parole.
“It highlights a painful reality, one’s individual criminal behavior can impact communities across multiple cities and multiple states,” victim Vivian Romero said.
In the Hawaii attack, which was caught on camera, Radimak was seen zipping past a mother and 18-year-old daughter trying to parallel park.
The daughter yelled “slow down” out of concern. The suspect was then seen turning around, approaching their car, punching the 18-year-old and, when mom Diane Ung gets out furious, he punches her in the eye.
He pleaded no contest to two assault charges.
“For the first time in a long time, we all can breathe a little easier knowing that he will have time he needs in a space away from the general public,” Lamprecht said.
At the sentencing hearing in Hawaii, Radimak said he regrets the assault there and takes accountability and said he needs treatment. His attorney argued he has a long history of undiagnosed schizophrenia and other mental illnesses and struggled with side effects from his medications.
KTLA has reached out to the Department of Corrections and the Los Angeles County District Attorney to see if they will try to extradite Radimak for parole violation.
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