A Crack in Trump’s Stonewalling

The dike is sprouting more leaks than the president has fingers with which to plug the expanding trickles.

To date, the cover-up has worked about as well as President Donald Trump could have hoped.

Almost four years after Trump declared his campaign for the presidency, and more than 30 months since he won that office, he has successfully kept secret almost all the things he wished to keep secret. How much debt does he owe, and to whom? How much of his income derives from people who do business with the U.S. government? How much of his income derives from foreign sources? Who are his business partners, and do any of them present ethical or national-security concerns?

The dispute over the president’s tax returns has not yet triggered a judicial process. Treasury Secretary Steve Mnuchin must first decide whether he will risk a contempt-of-Congress citation and shoulder personal legal risk. If the tax-return demand ends up in court, we’ll witness the unusual spectacle of a Republican administration inviting judges to reverse decades of conservative legal theory and to defy the clear letter of the law in favor of nebulous concepts of privacy. For half a century, conservative lawyers have mocked the 1965 birth-control case in which Justice William O. Douglas created a new constitutional right to privacy out of the “penumbras” formed by “emanations” of the Bill of Rights. Perhaps Douglas, like Julian Assange before him, will now transition from conservative villain to Trumpist hero.

The law very much favors Congress in the subpoena of Trump’s bankers. Congressional subpoena power extends to any subject on which Congress can constitutionally legislate, among other realms, as the Supreme Court has affirmed again and again. It’s not necessary that Congress actually have any legislation in mind, so long as it potentially could. The Supreme Court explained in 1975: “The wisdom of congressional approach or methodology is not open to judicial veto … Nor is the legitimacy of a congressional inquiry to be defined by what it produces. The very nature of the investigative function—like any research—is that it takes the searchers up some ‘blind alleys’ and into nonproductive enterprises. To be a valid legislative inquiry there need be no predictable end result.

Meanwhile, Attorney General William Barr has just advanced a likely doomed new legal theory that a president is entitled to shut down any investigation that he feels is unfair to him: “The president does not have to sit there constitutionally and allow [a special-counsel investigation] to run its course. The president could terminate the proceeding and it would not be a corrupt intent, because he was being falsely accused.” It’s an argument for total impunity based purely on political power—and for that reason will gain no favor from either Congress or courts.

 

White House Indicates It Won’t Meet Deadline for Trump Tax Returns

House Ways and Means chairman has requested the documents by 5 p.m.

“Once he’s out of audit, he’ll think about doing it. But he’s not inclined to do so at this time,” White House spokesman Hogan Gidley said on Fox News. “There is nothing nefarious there at all. This was litigated in 2016.”

The White House’s arguments about audits and public disinterest are disconnected from the arguments the Trump administration would eventually have to make to persuade judges that Congress is acting beyond its legal authority.

The request for the returns was made to the IRS under a law that would require them to be handed over, but Mr. Trump has strongly indicated his preference that they not be released. Treasury Department and IRS officials on Tuesday didn’t immediately respond to requests for comment.

Rep. Richard Neal (D., Mass.), chairman of the House Ways and Means Committee, has said he would interpret a failure to meet Tuesday’s 5 p.m. deadline as a denial of the request. He may soon issue a subpoena for the president’s returns or take the IRS straight to federal court to enforce a 1924 law that lets the chairmen of congressional tax-writing committees get any taxpayer’s returns.

Mr. Trump’s lawyer’s said in 2016 that he was under audit for tax years starting in 2009. As president, his returns face a mandatory audit under an IRS policy.

That audit and the fact that the returns were discussed during the 2016 election are irrelevant to Mr. Neal’s request. When Democrats took control of the House in January, he gained the power to obtain anyone’s tax returns.

Democrats say the returns could reveal more information about the former real-estate developer’s

  • sources of income,
  • tax strategies,
  • charitable giving and any
  • conflicts of interest.

Legal observers generally agree that the tax-writing committee must have a legislative purpose for getting one’s tax returns, and any court case could turn on whether that standard has been met. In his April 3 request, Mr. Neal argued that Congress needs to see how well the IRS is auditing the president and raised the possibility Congress could consider legislation in that area.

Mr. Trump’s personal lawyer and his allies in Congress have dismissed that reasoning as pretext. In their view, Democrats are on a political quest.

Democrats see a simple statute being ignored. If Mr. Mnuchin doesn’t turn over the documents, “he is likely engaged in the most serious executive branch defiance of law since the Nixon Administration,” Lawrence Summers, a former Treasury secretary, wrote on Twitter.

It could now take months for the legal process to unfold, and both sides seem dug in. Judges will look, in part, to a 1957 case in which the Supreme Court overturned the conviction of a man who had refused to answer some questions from the House Un-American Activities Committee.

“We have no doubt that there is no congressional power to expose for the sake of exposure. The public is, of course, entitled to be informed concerning the workings of its government,” wrote Chief Justice Earl Warren. “That cannot be inflated into a general power to expose where the predominant result can only be an invasion of the private rights of individuals.”

Mr. Neal sought six years of the president’s individual and business tax returns. If Mr. Neal does get the documents, his committee would first be able to view them in a closed session, and Mr. Neal could designate agents to review them, including the experienced nonpartisan staff of the Joint Committee on Taxation.

It would then take a vote by the full Ways and Means Committee to make the tax returns, or a report based on them, a public document. Democrats outnumber Republicans on that committee 25 to 17.

Blocking Trump Tax Return Release Puts Treasury Sec. In Legal Jeopardy | The Last Word | MSNBC

In a new Daily Beast article, tax expert David Cay Johnston reveals that if the treasury secretary and IRS commissioner do not comply with the request to release Trump’s tax returns, they will be violating a law punishable by up to five years in prison. Lawrence O’Donnell discusses with David Cay Johnston in an exclusive interview.