Politics
Can anything stop Donald Trump’s corruption?
That honor surely goes to the Justice Department’s settlement of a $10 billion lawsuit Trump filed against the IRS, demanding a reward after his tax returns were leaked by an outside contractor. The highest-profile element of the deal was the creation of a $1.8 billion “Anti-Arms Fund” that appears poised to reward the president’s allies who claim they have been victimized by the federal government. Another part of the deal, in which the IRS, part of the Treasury Department, agreed to grant him, his family and his businesses immunity from any claims or tax liabilities arising from ongoing tax audits of the family and his business, likely had more direct financial consequences for Trump. This subsidy appears to be sui generis. Danny Werfel, who served as IRS commissioner from March 2023 to January 2025, said he was not aware of any precedent where the agency agreed “in advance to permanently waive review of previously filed tax returns for a specific person or business.”
I asked Painter if he could think of any historical parallels with these latest developments. He couldn’t. “Nixon had his problems, but I don’t think there’s anything like that,” he said. “The president is specifically prohibited from obtaining financial favors from the Treasury while in office.” Painter was referring to the Constitution’s National Emoluments Clause, which prohibits the president from receiving any compensation from the government beyond his salary. Criticism has focused on the possibility of Trump, or members of his family, receiving money from the anti-arms fund — something Vice President JD Vance, for one, said wouldn’t happen. But granting IRS immunity also requires careful inspection. Trump famously paid virtually no taxes for many years, and he appears to have been under audit for much of that time. If he owes back taxes, the IRS agrees to save him a lot of money, which, in Painter’s eyes, amounts to a blatant violation of the Emoluments Clause. “The Founders anticipated this type of challenge,” he told me.
Last week, Trump said he “wasn’t involved” in the legal settlement with the IRS, which, in any case, is just the most recent chapter in a long story. He continues to promote crypto while a company he co-founded, World Liberty Financial, does billions of dollars in business in the sector. It is preparing to host the annual G20 summit at its Doral golf resort, just outside Miami. And his administration is working to reward businesses and individual donors with access and favorable actions. Leaving aside the question of why more Americans aren’t protesting all of this self-dealing, the burning question is what can be done to contain this and ensure that future presidents can’t repeat it. Ethics experts have a long list of suggestions.
“First and foremost, Congress needs to do its job as the first branch of government and keep the president in check,” Donald Sherman, head of the watchdog group Citizens for Responsibility and Ethics in Washington, told me. “He could say, ‘We’re not going to confirm any of your appointments until you end these relationships with the government. You won’t get a penny for your ballroom and your other priorities.’ »
As true and admirable as these sentiments are, they clash with the reality that Republicans control Congress. To at least some of them, the idea that the Jan. 6 rioters who stormed the Capitol are getting taxpayer money seems like too far-fetched a scam. Sen. Bill Cassidy described the $1.8 billion anti-arms fund as lacking “legal precedent and accountability.” Sen. Mitch McConnell called it “morally reprehensible.” Senator Thom Tillis called him “stupid on stilts.” But it’s worth noting that none of those three senators will be back next year, and it remains to be seen whether Republicans will take definitive action to block the fund.
Even if they did, it would not address the broader issue of restricting presidential power and preventing corruption. “I think after Trump leaves office, we’re going to need a serious reset,” Painter said. He recalled the post-Watergate era, when, in response to revelations about how Richard Nixon had misused campaign funds and ordered the IRS to investigate his enemies, Congress passed the Ethics in Government Act of 1978. Among other things, this bipartisan legislation mandated financial disclosure by government officials, including the president; created the Office of Government Ethics; and created a mechanism for the attorney general to appoint a special prosecutor to investigate wrongdoing within the executive branch. “There was a real effort to clean things up,” Painter said. “Over the years, everything gradually eroded. Biden didn’t fix the problem and Trump trampled on it.”
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