Trump Lawsuit Could Cost U.S.taxpayers $10 Billion,Treasury Secretary Confirms
Taxpayers could be on the hook for a staggering $10 billion if former President Donald Trump succeeds in his lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns,Treasury Secretary Scott bessent revealed on Thursday.
The confirmation came during a hearing before the Senate Banking Committee, where Senator Ruben Gallego (D-Arizona) pressed Bessent on the financial implications of a potential victory for Trump. Gallego directly asked, “letS say, for some reason, he actually wins that lawsuit, where would that $10 billion come from?”
Bessent initially hesitated, but ultimately conceded that the funds would be drawn from the Treasury’s general account – the very account funded by tax payments. “It would come from Treasury… The Treasury General Account,” he stated, clarifying that this account is used for government payments and is directly replenished by taxpayer contributions.
“So,taxpayers,” Gallego pressed.
“Yes,” Bessent confirmed. “Part of the 440,000 taxpayers whose returns were leaked.” He further clarified that while those taxpayers were not directly suing, a accomplished outcome for Trump would allow him to “pocket that money.”
The prospect of Trump and his associates receiving $10 billion from taxpayers,and potentially leveraging his position to do so,has sparked outrage. Critics argue this represents a continuation of Trump’s pattern of self-dealing and corruption, notably as he has concurrently pursued policies that could diminish vital social programs. Recent analyses indicate that Trump and his family have already profited by nearly $4 billion during his presidency, including approximately $1 billion from a newly launched cryptocurrency venture.
Trump filed the lawsuit last week, alleging that the 2018 and 2020 leaks of his tax records caused him and the Trump Institution damages and portrayed them in a “false light.” The suit also claims the leaks negatively impacted his public standing, despite his current position as president offering significant protection.
The release of Trump’s tax returns followed his refusal to voluntarily disclose them during his first term, raising concerns about transparency and tax fairness. The leaked documents revealed that Trump paid remarkably little in taxes over many years, including a mere $750 in federal income taxes in the year he was first elected.
Legal experts have described the lawsuit as unprecedented and fraught with conflict of interest. “Trump,who is estimated to have wealth between $5 and $7 billion,now demands that American taxpayers give him $10 billion to compensate him for not being allowed to keep his tax avoidance a secret from them,” stated Amy Hanauer,executive director of The Institute for Economic Policy (ITEP),in a statement last week.
hanauer further emphasized the unusual nature of the case,noting,”There is no precedent for a sitting president to sue the government agencies that report to him.” She warned that even if a judge were to reject Trump’s claims, the IRS might be pressured to settle for a substantial sum to avoid a protracted legal battle.
. The outcome of this case could set a dangerous precedent, potentially opening the door
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