Donald Trump has reached a $1.776 billion (£1.4 billion) settlement with the Justice Department over his leaked tax returns. The nine-page agreement states that the agency will no longer pursue any claims over tax liabilities against the president.
The settlement also impacts taxpayers believed to be victims of lawfare and weaponisation. While it did not directly mention any attempts to go after Trump, his family, or his businesses, the settlement benefits the US president.
DOJ Prevents IRS From Investigating Trump's Taxes
Acting Attorney General Todd Blanche posted a one-page document on the DOJ website announcing the settlement agreement, which states that the Internal Revenue Service (IRS) is permanently barred from pursuing all efforts to determine whether Trump and other government officials are liable for non-payment or underpayment of taxes.
Earlier this year, Trump filed a $10 billion (£7.88 billion) lawsuit against the IRS over the leaking of his returns. If found liable for tax underpayments, Trump could owe the IRS roughly $100 million (£78.8 million). Critics questioned the move, however, given that Trump had previously declared he would make his tax documents public.
Democrats vs Republicans
Following the announcement, Democratic senators slammed Blanche, accusing him of crafting a settlement that benefits Trump and his allies. Senator Chris Van Hollen called it an unprecedented move. Blanche pushed back, saying any individual who believes they are a victim of lawfare and weaponisation could apply for the settlement. 'It's not limited to Republicans. There's no limitation on the claims,' Blanche said.
Blanche also said that he was not among the five commissioners who set the rules of the settlement, but that he had appointed them. He added that anyone, including Hunter Biden, could apply for the fund.
More Points of View About Trump's Tax Settlement
Spokesperson Natalie Baldassarre told CNN that the agreement would not prevent the IRS from auditing Trump's and his family's tax returns after the settlement date. 'As is customary in settlements, both sides have executed waivers of a variety of claims that were or could have been brought. There would be little point in settling several significant claims if either party could simply turn around and seek to initiate more adverse claims that could have been pursued previously,' she said.
Democratic Rep Richard Neal called the settlement a form of corruption, saying Trump had turned the federal government into his personal protection racket. 'The same people struggling with groceries and gas are now forced to bankroll this billionaire's legal shakedown and the enrichment of his family empire,' he said.
Before the settlement was reached, 93 Democrats filed a motion opposing any award to Trump and allies despite their tax liabilities. 'This is pure fraud and highway robbery. No one can be both plaintiff and defendant in the same case. And no president can concoct a fake case for $10 billion in damages against the government so he can be plaintiff and defendant and then "settle" his bogus case against himself as a judge,' they wrote.
As of writing, Trump has not released a statement on the issue.
