Trump’s Unprecedented Corruption

The president just created a slush fund to pay off supporters with the tax dollars of Americans— and barred the IRS from ever auditing himself or his businesses.

Trump on May 22 -- public domain image

By Craig Holman

Even President Trump’s own Justice Department is having a hard time grappling with Trump’s brazen money grab from the IRS — and, by extension, American taxpayers.

First, Trump attempted to enrich himself and his family by suing the federal government for $10 billion — almost the entire annual budget of the IRS — for releasing Trump’s tax returns.

This is a first on so many levels.

Trump is the first nominated presidential candidate since the 1980s not to release his tax returns. Every other presidential candidate has voluntarily disclosed their tax returns as a gesture of openness.

Trump is the first president in history to sue the federal government for personal damages, and to the whopping tune of $10 billion. But legal experts, including many at the Justice Department, doubted the case would go very far.

U.S. District Judge Kathleen Williams noted that Trump issued an order binding government lawyers to represent his own viewpoint and questioned whether Trump could sue an agency that he controls. Who would defend the government against Trump? The Justice Department never issued any legal statement nor sent lawyers to any of the proceedings.

Second, just as it appeared Judge Williams would dismiss the case, Trump negotiated a settlement with his own Justice Department’s lawyers establishing a $1.776 billion fund to pay off January 6 rioters and others who were prosecuted for their efforts to prevent the transition of power following the 2020 election.

While Trump and the Justice Department lawyers asserted the spending decisions will be made by a five-member commission, the five members are all appointed by the attorney general, four directly and the fifth selected by the attorney general in consultation with congressional leaders.

Since Attorney General Todd Blanche is a Trump loyalist, the commission is not likely to be independent. What is clear is that this is nothing more than a slush fund to reward Trump’s friends and those who stormed the U.S. Capitol on January 6 — yet another self-interested act no president in history has ever done.

Two Jan. 6 police officers who defended the Capitol filed a lawsuit to prevent any payouts from Trump’s slush fund. Filed in U.S. District Court in D.C., Harry Dunn and Daniel Hodges argue that the fund violates the 14th Amendment’s prohibition on using federal money to “pay any debt or obligation incurred in aid of insurrection or rebellion against the United States.” More than 150 officers were injured in the violent attack.

And some members of Congress, both Democrats and Republicans, are pressing congressional action to nullify the fund, asserting that the administration has no authority to establish such a fund without congressional oversight or approval.

If you think Trump’s lawsuit and negotiated settlement are egregious violations of the public trust, Trump took another even more galling and unprecedented action. Attorney General Blanche announced an amendment to the negotiated settlement the very next day that would protect Trump and his family from any lawsuits and investigations by governmental entities, including tax audits.

The one-page amendment reads that the government would be FOREVER BARRED and PRECLUDED (emphasis original) from pursuing current tax claims against Trump and his businesses. This is not only immoral, it’s also likely illegal.

Trump stands to personally gain $100 million or more from such an agreement. Furthermore, 26 U.S.C. 7217 prohibits the president from “directly or indirectly” interfering in tax audits. Though the law does not seem to apply to the attorney general, it could be argued that Blanche is acting at the behest of Trump and thus violating the law.

Trump is now clearly acting purely for his own selfish interest. Voters see it, the courts see it, and even congressional Republicans are beginning to question Trump’s leadership.

Craig Holman is the government affairs lobbyist for Public Citizen. This op-ed was distributed by OtherWords.org