US Government Drops Tax Claims Against Trump in Settlement

The US government will permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump’s US$10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

As part of the settlement agreement, the US is “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump Organisation’s current tax issues, according to a one-page document posted to the Justice Department’s website on Tuesday.

The settlement, which marks an extraordinary use of executive power, goes beyond resolving litigation and effectively helps shield the president from further examination of his finances and legal conduct.

The move comes after the Trump administration announced Monday the creation of a nearly US$1.8 billion fund to compensate allies of the Republican president who believe they have been unjustly investigated and prosecuted, an arrangement that Democrats and government watchdogs derided as “corrupt” and unconstitutional.

The “Anti-Weaponisation Fund” of US$1.776 billion will allow people who believe they were targeted for prosecution for political purposes, including by the Biden administration Justice Department, to apply for payouts, creating what acting Attorney General Todd Blanche called “a lawful process for victims of lawfare and weaponisation to be heard and seek redress”.

Blanche, who was grilled by lawmakers on Capitol Hill on Tuesday, would not rule out the possibility that people who carried out violence during the January 6, 2021, riot at the US Capitol will be considered for payouts from the new fund.