Trump achieves tax immunity for himself and his family
The measure arises from an out-of-court settlement that also allows him to create a fund to financially compensate his allies
WashingtonIn his legal battle against the U.S. Treasury Department, known as the IRS for its English acronym, Donald Trump has achieved tax immunity for himself and his entire family. The resolution is the result of the out-of-court settlement that the magnate has signed with the IRS in exchange for withdrawing the multimillion-dollar lawsuit he had filed against the agency. The administration will definitively close the investigations for alleged tax non-payments and evasions that were open against him and his family, according to the document published Tuesday night by the Department of Justice and signed by interim Attorney General Todd Blanche. Previously, Blanche had been one of Trump's personal lawyers.
The photograph of the legal dispute resolution is as follows: Trump, the president, makes an out-of-court agreement with the tax agency - which depends on the government he leads - an agreement that has the approval of a loyalist Department of Justice currently headed by one of his former lawyers. Practically, the Republican has negotiated with himself.
The saga dates back to January 2026, when Trump filed a $10 billion lawsuit against the IRS for the leak of his tax returns. Now, in exchange for the complaint against the agency being withdrawn, the United States is ""forever prohibited and barred" from examining or prosecuting "any" tax claim against Trump, his children, and the Trump Organization. This is established by the published document, which is only one page long and, in practical terms, provides total protection for the plaintiffs. The decision does not exempt him from paying taxes, but it shields him from any investigation to verify whether he has committed violations.
After the publication of the text, the Department of Justice has assured in statements to Associated Press that the agreement refers solely to existing audits, not future ones. But the text is quite explicit and clear when it uses the terms "forever" and "any." Even if the department's version is true, the document sets a precedent that opens the door for the Trump clan to evade new investigations in the future.
The measure constitutes one of the magnate's most blatant actions in abusing presidential power for his own benefit. In the first year of his second term alone, Trumphas managed to earn $1,408,500,000 thanks to the presidency, according to estimates by The New York Times. Now, furthermore, the Trump clan will practically have a free hand to do as they please in terms of taxes, as they cannot be investigated.
Compensation for the president's allies
The decision was announced after the Trump administration announced on Monday, as part of this out-of-court settlement with the IRS, the creation of a fund of almost $1.8 billion to "compensate" the president's allies. The fund has been dubbed the "fund against the instrumentalization of legislation." The government encourages all those who feel they have been unfairly prosecuted or investigated by previous administrations –such as Joe Biden's– to apply for compensation. This could include everyone from businesses to the Capitol attackers, whom Trump has already pardoned because he considers January 6, 2021, to have been a "day of love."
In fact, Blanche has already encouraged the Capitol attackers to submit their applications to the administration. With this move, Trump reminds his followers once again that, as long as he is in power, any action they take in his favor – such as attempting to interrupt the certification of the 2020 electoral results – will have no legal consequences whatsoever. It is no longer just about rewriting the country's history, but about ensuring ways to shield himself in power.
Democratic congressmen have already lashed out at the fund, which they call a completely "corrupt" measure. Patty Murray, a Democratic senator, accused Trump on Tuesday of creating a "slush fund to enrich his own friends."
This Wednesday, two police officers who tried to contain the mob that stormed the Capitol in 2021 have filed a lawsuit against the president over the creation of this fund. In the document, the two officers denounce that it is "the most blatant act of corruption of this century" and that the fund is intended to "finance insurgents and paramilitary groups who commit acts of violence in his name." During the assault on the Capitol, not only Trump supporters without any affiliation participated, but also numerous members of the far-right group Proud Boys.