Recommendations of the Editorial team
The Justice Department confirmed Monday that it is setting up a $1.776 billion fund to pay out tax money to “victims of lawfare and weaponization.”
According to a DOJ statement to MeidasTouch, the fund “shall consist of a commission of five members appointed by the Attorney General. One member will be selected in consultation with congressional leadership” – and “the President may remove any member.”
A few hours before the announcement, US President Donald Trump withdrew a $10 billion lawsuit against the Internal Revenue Service (IRS), paving the way for the fund’s creation – a maneuver intended to allay concerns about Trump’s attempts to use taxpayer money to compensate himself. Last week, ABC News and CNN reported on internal discussions in the White House: According to this, Trump wanted to drop the lawsuit in return for the billion-dollar fund, which is intended to compensate allies and other people who, in his opinion, suffered injustice from previous administrations – especially that of ex-President Joe Biden. According to CNN, the agreement would also end any ongoing IRS audits of Trump, his family members or affiliates.
Who could benefit?
ABC News reported the fund could respond to claims from people who say they are victims of abuse or “weaponization” by the Biden administration. This could include the approximately 1,600 defendants in the storming of the Capitol on January 6th, whom Trump pardoned shortly after taking office last year. While insiders claim the agreement may contain a clause preventing Trump from pocketing the money directly, his companies or other holdings and connections may not be subject to such a restriction.
Trump’s lawsuit against the IRS was originally filed in January. It sought $10 billion in damages over the 2019 leak of Trump’s tax returns to The New York Times. In recent weeks, the lawsuit has come under renewed fire after government officials confirmed that any settlement would be funded entirely by taxpayers. The essence of the matter boiled down to Trump suing his own government – of which his former private lawyer is currently acting head of the Justice Department – in order to secure a direct transfer from the treasury.
Trump has repeatedly claimed that any payments would go to charity. This claim is inherently lacking in credibility given the level of self-enrichment that the president and his family engage in. In light of recent reports, it’s becoming increasingly clear that the “charity” Trump has in mind isn’t necessarily intended to benefit the poor, hungry or orphans – but rather to help his cronies and allies squeeze a little more out of taxpayers’ pockets.
