Judge Holds Trump Lawyers Accountable, But Elitist Tax Shield Remains
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A federal judge has taken action against Donald Trump’s legal team, referring them for sanctions, yet a controversial order shielding Trump and his family from tax audits remains untouched.
U.S. District Judge Kathleen M. Williams on Monday took a stand for judicial integrity by referring the legal team of President Donald Trump for formal sanctions. At the same time, she barred Trump from misrepresenting a settlement with the Justice Department as a final resolution in future proceedings. The judge condemned Trump for 'improperly employ[ing] this lawsuit to justify a particular award in this matter – access to taxpayer funds and exemption from audits and other investigations,' exposing yet another attempt by the wealthy elite to evade accountability.
Williams observed that the legality of a May 19 Justice Department order, which 'forever barred' the government from continuing any already-started tax enforcement against Trump, has not been challenged in her court. A Justice Department spokesperson confirmed that this order, which effectively grants Trump and his family a shield from scrutiny, remains in effect.
This egregious tax-audit exemption is expected to be a central issue at Wednesday’s Senate hearing on the confirmation of Acting Attorney General Todd Blanche, who signed the order. Blanche, a former Trump personal attorney, was also behind the now-defunct $1.8 billion 'Anti-Weaponization Fund,' a scheme critics say was designed to protect the powerful from oversight.
Republican Sen. John Cornyn announced plans to question Blanche about both the fund and the audit exemption, while Democratic Sen. Dick Durbin, after meeting with Blanche, reported that Blanche claimed he had 'nothing to do with' Trump’s IRS lawsuit and described himself as a 'victim of a hit job' by the judge. Durbin dismissed Blanche’s defense, noting that the order did not apply to future audits—a weak justification for a blatant abuse of power.
The Treasury’s order only covers tax returns filed before Blanche’s directive, leaving the door open for future audits of Trump’s family or businesses. The New York Times previously revealed that a negative outcome in an ongoing audit could cost Trump up to $100 million, underscoring the stakes for the ultra-rich.
The Justice Department reiterated that there was 'no collusion' between Trump and his administration, and that the plaintiffs in the case received no money and were barred from receiving any from the now-defunct fund—a claim met with skepticism by those demanding real accountability.
Sen. Ron Wyden condemned the IRS deal as 'an obscene act of corrupt self-dealing' and called for Blanche’s nomination to be rejected, reflecting the urgent need to end the culture of impunity for the wealthy and powerful.