Chris Cioffi (Bloomberg Law): Democrats’ 100% Tax Plan on Fund Payouts Zeroes In on GOP Angst
Democrats are trying to force the GOP’s hand by introducing a 100% tax on payments from the Justice Department’s new fund for victims of government weaponization, even as Republicans face increasing pressure on what’s become a politically toxic $1.8 billion pot of money.
Rep. Mike Thompson (D-Calif.) unveiled his version of the propsoal Wednesday and Republicans thwarted his attempt to force a vote on other legislation targeting the fund Thursday at a Ways and Means Committee markup.
Related Coverage:
- Macon Atkinson (Bloomberg Law): Wyden, Finance Panel Democrats Seek Investigation of Trump Fund
Democrats on the Senate Finance Committee called on chairman Mike Crapo (R-Idaho) Friday to launch a bipartisan probe into the Justice Department’s new fund for victims of government weaponization.
Led by ranking member Ron Wyden (D-Ore.), the letter slams the $1.8 billion fund set up this week after President Donald Trump agreed to drop his $10 billion lawsuit against the IRS over the 2019 leak of his tax information, and the Justice Department’s decision to grant immunity to the president and his family from tax inquiries.
- Danny Werfel (Bloomberg Law): Trump IRS Deal Creates a Federal Checks-and-Balances Stress Test
Creating a $1.8 billion taxpayer-funded compensation fund in exchange for President Donald Trump dropping his lawsuit against the IRS has government experts—including me—trying to make sense of what precedent this creates going forward.
- TaxProf Blog: WSJ: Trump’s Deal With His Administration Also Ends His Tax Audits
- TaxProf Blog: Trump v. IRS Dismissed
