Far left progressive activist Kirk Bangstad, owner of Minocqua Brewing Company and a Democratic candidate for Wisconsin governor, has proposed that Wisconsin and other blue states place residents’ federal taxes into state escrow accounts to pressure President Donald Trump into reversing policies he claims harm Democratic-led states.
In a video posted on the Minocqua Brewing Company’s Facebook page, Bangstad outlined the plan as part of his campaign platform. He suggested directing Wisconsinites’ federal taxes, especially federal excise taxes, into a state-controlled escrow account. The funds would be withheld from the federal government until Trump “pays us what we’re owed and stops harming us,” according to the video.
Bangstad argued that if multiple blue states coordinated, they could “bring Trump to his knees.” He acknowledged the strategy would likely lead to lawsuits but urged candidates or governors “willing to stick their necks out.” He framed the idea as a response to alleged federal funding cuts and actions targeting blue states, including immigration enforcement.
However, legal experts and constitutional scholars say the proposal runs directly counter to core provisions of the U.S. Constitution. The Supremacy Clause in Article VI establishes federal law as the “supreme Law of the Land,” binding on states and preventing them from obstructing federal tax collection. The 16th Amendment grants Congress the power to levy and collect income taxes without apportionment among the states.
Attempts by states to interfere with federal tax obligations have been rejected by courts for over 200 years. Precedents such as McCulloch v. Maryland (1819) prohibit states from impeding federal operations. Private employers and individuals must withhold and remit taxes directly to the IRS under federal law. A state mandate requiring employers to redirect those payments would place employers in violation of federal requirements, exposing them to penalties, audits, and possible criminal liability.
The plan is a modern attempt at nullification, the discredited theory that states can unilaterally invalidate federal law. The Supreme Court has consistently struck down such efforts. Even limited escrow of state agency payments would not cover the bulk of federal tax revenue from individuals and corporations.
Bangstad, a progressive activist known for politically themed beers and reprehensible anti-Trump rhetoric, announced his gubernatorial bid amid controversy over prior social media posts. His proposal joins other resistance-themed ideas he has floated, including delaying personal taxes.
Wisconsin is a net donor state, contributing more in federal taxes than it receives in spending. Withholding could jeopardize federal funding for highways, Medicaid, education, and other programs, while triggering IRS enforcement actions against residents and businesses.
No state has successfully implemented sustained federal tax withholding. Similar symbolic proposals in the past have remained unworkable due to federal supremacy and practical enforcement challenges.
