US President Donald Trump has made a deal to end a $10 billion lawsuit against the US government. The deal sets aside close to $1.8 billion for people who claim the government treated them unfairly. The deal has upset many Democrats. They say Mr. Trump is misusing money from American taxpayers to help himself.
In 2020, Mr. Trump’s private tax records were sent to reporters. The documents showed that in 10 of the previous 15 years, Mr. Trump had paid no US tax at all. The man who “leaked” these documents to reporters didn’t work for the IRS, but for a company hired by the IRS. He is now in jail for leaking the documents.
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In 2020, someone who worked for a company hired by the IRS leaked Mr. Trump’s private tax records to reporters. Mr. Trump, two of his sons, and his company sued the IRS for $10 billion, saying the leak had damaged his business. Above, a sign at the main offices of the IRS in Washington, DC.
This year, Mr. Trump, two of his sons, and his company sued the IRS for $10 billion for leaking his tax information. Mr. Trump said the leak had damaged his business.
The lawsuit shocked many people since, as president, Mr. Trump is in charge of the IRS. Mr. Trump was trying to get money from a US government agency under his own control.
(Source: Molly Riley/White House [Public Domain], via Wikimedia Commons.)
The US Department of Justice (DOJ) did not take steps to fight Mr. Trump’s lawsuit in court.
The Department of Justice
In the past, the US Department of Justice (DOJ) has acted independently of the president. But in his second term, Mr. Trump has taken tighter control of the department. Critics say he has used it to target those he sees as enemies. Todd Blanche, who is currently leading the DOJ as acting (temporary) Attorney General, was Mr. Trump’s personal lawyer and has defended him in court.
But on Monday, the DOJ announced that a deal had been reached. Mr. Trump agreed to drop his $10 billion lawsuit. In return, the DOJ agreed to create a nearly $1.8 billion fund to pay people who say the US government has treated them unfairly.
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The DOJ didn’t fight Mr. Trump’s lawsuit in court. On Monday, it announced a deal for a $1.8 billion fund to pay people who say the US government has treated them unfairly. Above, acting Attorney General Todd Blanche, who used to be Mr. Trump’s personal lawyer, discussing the deal in the Senate yesterday.
Mr. Trump has long complained that he and his supporters were treated unfairly by the government under President Joe Biden. Mr. Trump has been investigated for some of his actions, including his handling of secret documents and his efforts to change the results of the 2020 election.
The fund will be open to people who say they were treated unfairly by the government. That could include supporters of Mr. Trump who were arrested for taking part in the attack on the US Capitol on January 6, 2021.
The agreement creates a five-person group to decide who can get money from the fund. The group will be chosen by the US Attorney General, the country’s top lawyer. Mr. Trump will be able to fire any of the group members that he doesn’t like.
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The DOJ says the IRS won’t ever investigate any tax problems related to Mr. Trump. The fund will be open to people who say they were treated unfairly by the government. That could include supporters of Mr. Trump who were arrested for taking part in the attack on the US Capitol on January 6, 2021 (above).
Under the deal, Mr. Trump and his sons won’t be paid from the fund, but they will get a government apology. On Tuesday, the DOJ added that the IRS will not ever investigate or make any charges for any tax problems related to Mr. Trump, his family or his businesses. That new part of the agreement could be worth tens of millions of dollars.
Democrats are very upset about the deal, which they describe as “corruption“. They say it allows Mr. Trump to use government money to reward his friends and supporters. Over 90 Democrats in the House of Representatives have gone to court to block the deal. One Democrat said Mr. Trump’s government was “finding new ways to steal from the American people.”
Did You Know…?
The actual amount of money set aside for the fund is $1.776 billion. That seems to be an attempt to connect the fund to US history. The US declared its independence in 1776.