Governor-elect Mikie Sherrill said she is open to the idea of New Jersey refusing to pay federal taxes as a protest against the Trump administration — a position that is already sparking backlash from state Republicans who say the move would be illegal and reckless.
Sherrill made the provocative comment during a recent episode of “The Weekly Show with Jon Stewart.” Appearing alongside Virginia’s governor-elect Abigail Spanberger, Sherrill agreed with Stewart’s suggestion that states could launch a “drastic” tax strike to push back on federal policies.
“I think that’s a great idea… If (the federal government is) not gonna run the programs, then what are we paying them for?” Sherrill said. “Let’s stop paying for it.”
Sherrill argued that the Trump administration has cut or weakened federal programs tied to mental health, substance abuse treatment, food assistance, education, and environmental protection — services she says New Jersey taxpayers help fund but are no longer fully receiving.
The incoming Democratic governor suggested the “easiest place to start” a tax revolt would be through state court action, saying New Jersey could “claw back and freeze” federal dollars. She did not offer further details on how such a strategy would work or whether her administration plans to pursue it.
Sherrill also pointed to California Gov. Gavin Newsom, who floated a similar tax strike last summer but never followed through.
New Jersey sends approximately $140.2 billion to the federal government each year — roughly four percent of all U.S. tax revenue. Residents paid an average of $22,302 in federal taxes during the 2024 fiscal year, around $4,500 more than the national average.
Sherrill said she would “love to rework the federal taxation system,” suggesting the current structure allows Trump to use funding as political “leverage” against states.
State Sen. Joe Pennacchio (R-26) slammed the idea in a statement, saying states have no legal power to withhold federal taxes.
“States have no authority to withhold federal tax dollars and are legally obligated to uphold funding for federal programs, period,” Pennacchio said.
He called Sherrill’s comments “partisan interference” and urged her to focus on affordability in New Jersey instead of national politics.
Pennacchio said Sherrill should drop talks of a tax strike and instead support a Republican plan to wipe out state sales taxes on energy bills and suspend the Societal Benefits Charge. The legislation, which he is sponsoring with Sen. Latham Tiver (R-8), would save households “hundreds of dollars,” he said.
So far, Sherrill’s remark appears to be rhetorical, with no official proposal or timeline. But her support for a potential tax strike signals an administration ready to confront Trump directly — even as critics warn that withholding federal revenue could jeopardize funding, trigger lawsuits, or stall major projects in New Jersey.
Whether Sherrill backs away from the idea or doubles down may become an early test of how aggressively she intends to challenge Washington once she takes office.