Politics

Trump Refuses to Ditch One Big Part of Grift Deal

TAX BREAK

The “Anti-Weaponization Fund” is on ice, but not Trump’s tax amnesty deal.

Donald Trump, IRS photo illustration , ilo
Photo Illustration by Eric Faison/The Daily Beast/Reuters

A provision that would directly benefit President Donald Trump in the agreement over his dropping his $10 billion lawsuit against the IRS is set to go forward, even as the administration hits pause on the “Anti-Weaponization Fund.”

On Monday, the Justice Department said it would abide by the court order temporarily halting the creation of the $1.8 billion taxpayer-funded fund to pay out those who claimed to have been politically targeted.

But a separate provision of the agreement that grants Trump and members of his family a sweeping tax amnesty is set to proceed.

The White House referred any questions about the deal to the president’s personal legal team and the Justice Department. A spokesman for the legal team indicated the agreement blocking the president from future tax audits was going forward.

A provision of the deal for President Donald Trump to drop his $10 billion lawsuit against the IRS gave him and members of his family sweeping tax amnesty. Trump's sons Don Jr. (pictured) and Eric along with the Trump Organization were plaintiffs in the original lawsuit brought against the IRS earlier this year.
A provision of the deal for President Donald Trump to drop his $10 billion lawsuit against the IRS gave him and members of his family sweeping tax amnesty. Trump's sons Don Jr. (pictured) and Eric along with the Trump Organization were plaintiffs in the original lawsuit brought against the IRS earlier this year. Annabelle Gordon/Annabelle Gordon/Reuters

The spokesman blasted the IRS and said it “wrongly allowed a rogue, politically-motivated employee to leak private and confidential information about President Trump, his family, and the Trump Organization to the New York Times, ProPublica and other left-wing news outlets, which was then illegally released to millions of people.

“President Trump continues to hold those who wrong America and Americans accountable,” the spokesman added.

Trump sued his own government in an unprecedented move earlier this year after a contractor with the IRS leaked his and other taxpayers’ documents to news organizations during the president’s first term.

Last month, the president agreed to drop the $10 billion lawsuit, and the Justice Department announced an agreement to set up the so-called “Anti-Weaponization Fund.” Critics warned the money would be used to pay out those who stormed the U.S. Capitol on January 6.

But there was another provision to the agreement for the president to withdraw the lawsuit revealed separately.

The one-page document signed by Acting Attorney General Todd Blanche was posted one day after the Justice Department revealed the $1.8 billion fund.

The provision of the agreement giving Trump sweeping tax amnesty as part of him dropping the IRS lawsuit was only signed by Acting Attorney General Todd Blanche, who previously served as Trump's personal criminal attorney.
The provision of the agreement giving Trump sweeping tax amnesty as part of him dropping the IRS lawsuit was only signed by Acting Attorney General Todd Blanche, who previously served as Trump's personal criminal attorney. Evelyn Hockstein/Reuters

The vaguely worded document dated May 19 declared the IRS is “FOREVER BARRED and PRECLUDED” from “prosecuting or pursuing” all claims and “examinations” of Trump or “affiliated individuals” as well as related trusts and businesses.

The president’s sons, Don Jr. and Eric, along with the Trump Organization, were also plaintiffs in the original lawsuit. The document specifically includes any tax returns filed before the effective date.

While the “Anti-Weaponization Fund” was put on hold, the agreement granting Trump sweeping protection from future tax audits and penalties was announced separately, with only Acting Attorney General Todd Blanche’s signature.

The Daily Beast also asked the Justice Department for comment.

Democrats vowed to fight the president’s tax amnesty deal on Capitol Hill on Tuesday.

Senate Minority Leader Chuck Schumer said the first amendment he would introduce when the Senate moves forward with the next reconciliation package would be a measure to block the provision protecting Trump and his family from tax audits and penalties as well as permanently prevent the creation of the “Anti-Weaponization Fund.”