Analysis
Trump’s tax immunity scheme hoists president by his own petard on Blanche AG nomination
Sam Levine
Republican senators sought written limits on settlement, but president held firm despite risk to attorney general pick
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Donald Trump’s refusal to officially enda hugely controversial agreement giving him broad tax immunity and creating a 1.8bn slush fund underscored how the US president’s own self-interest takes precedence above all else in his government
For weeks, Todd Blanche, the acting attorney general, has said that the slush fund portion of the agreement was dead. And for a few brief hours on Wednesday, it seemed that the president might agree to a relatively modest request from two Republican senators to put in writing that there were certain limits on an extraordinary tax immunity deal. After all, it seemed like a small price to pay in exchange for getting Blanche, a staunch Trump loyalist who previously served as his personal lawyer, confirmed permanently as the US attorney general.
The agreement was part of a deal between Trump and the government to end a lawsuit seeking $10bn in damages for the unauthorized disclosure of the president’s tax records. A federal judge overseeing the case harshly criticized the government earlier this month, noting the government did not make a serious attempt to defend itself in the case and it seemed to be an effort to engineer a favorable result for the president
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As negotiations wore into Thursday, the two Republican holdouts, John Cornyn of Texas and Thom Tillis of North Carolina, signaled they were ready to support Blanche. “If this were just between me and Todd Blanche, we would have worked this out, but, apparently, he’s getting some pushback from higher-ups at the White House. I don’t know who, but it doesn’t need to be this hard,” Cornyn said on Capitol Hill
“I don’t know who it is – I’m just trying to get them out of the way so we can get the president his AG,” Tillis told Punchbowl News
But as reports of negotiations continued into the morning, Trump left little doubt who the one holding up the negotiations was
“John Cornyn, of Texas, and Thom Tillis, of North Carolina, both of whom I refused to Endorse, and whose political careers have been ended by my action, are refusing to vote for this Great Nominee, who will remain, in any event, as Acting,” Trump posted on Truth Social a little before noon on Thursday. “Remember, both Cornyn and Tillis voted for Merrick Garland, and others, too numerous to mention. I have no objection to temporarily withdrawing Todd’s name, if they do not do the right thing, and putting him back after Cornyn and Tillis are out of office.”
It was not immediately clear if a confirmation vote for Blanche was off the table. Both Cornyn and Tillis met with Blanche late on Thursday afternoon and were reportedly close to reaching a resolution
In the immediate future, there is no penalty for Trump or Blanche in blowing up the negotiations. Under federal law, Blanche, who was confirmed by the Senate to be the deputy attorney general, can continue serving as the acting attorney general indefinitely
In some sense, the episode was a vindication of the power of Congress and an illustration of the immense sway even one or two Republicans can have when they push back on the president. Trump’s ultimate position also underscored how unwilling he is to concede anything to political rivals – he has openly feuded with Cornyn and Tillis – even if it means sacrificing a political achievement
The White House declined to comment. “Refer you to the TRUTH,” a spokesperson said
One does not have to look very far to understand why Trump would be unwilling to cede any ground on the agreement. One IRS audit could have cost the president $100m, according to the New York Times. So it’s easy to understand why Trump would want the tax provision in the agreement – which grants him, his family, and businesses or related entities immunity from audits for any matter until the agreement was reached
Cornyn reportedly sought to get Blanche to put in writing the agreement that clarified the exemption only applied to the named plaintiffs in the case, exclusively applied to the IRS, and was only about past tax returns. Even under those conditions, Trump still could have benefited tremendously
Under the settlement agreement, Trump and his sons were prohibited from making a claim on the slush fund. Blanche has been publicly adamant that the fund is not moving forward, though he conceded during his confirmation hearing that the plaintiffs in the case could theoretically try and push to enforce it. Trump’s refusal to formalize the end of the fund leaves open the possibility he could try to do it
Trump also seemed to be making a gamble that any resistance to confirming Blanche would disappear after the midterm elections. Cornyn suggested on Thursday that was not going to happen
“POTUS is mistaken if he believes concerns about the provisions in his tax lawsuit settlement are limited to me and Senator Tillis,” he posted on X
Anna Betts contributed reporting
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