Bessent trashes Newsom plan to tax payments from Trump fund
The Justice Department announced the $1.8B fund as part of the settlement of a Trump lawsuit against the IRS, which Bessent oversees.
Bart JansenWASHINGTON – Treasury Secretary Scott Bessent called California Gov. Gavin Newsom’s proposal to fully tax any payments from President Donald Trump’s proposed $1.8 billion litigation fund “stupid.”
Trump proposed to distribute the money from a settlement of his lawsuit against the Internal Revenue Service to people deemed the victims of illegitimate Justice Department investigations.
But Democrats and some public-interest groups blasted the proposed anti-weaponization fund as a slush fund to reward the president's political supporters. Newsom proposed to tax Californians 100% for any payments they receive from the fund.
“There is no cure for stupid,” Bessent told reporters at the White House, when asked about Newsom’s proposal.
The Justice Department announced May 18 it was offering $1.776 billion to "victims of lawfare and weaponization" as part of a settlement of a $10 billion lawsuit filed by Trump and his family against the IRS.
Part of the criticism of the fund is that it could benefit people who were convicted of or charged with attacking the Capitol on Jan. 6, 2021, and who were later pardoned by Trump.
Trump has said a five-person committee overseen by Acting Attorney General Todd Blanche would determine how to distribute the money.
Reporters asked Bessent, who oversees the IRS, how the agency reached the settlement. But he referred questions to Blanche.
“There’s ongoing litigation so it would be inappropriate for me to comment,” he said.
But Bessent said Trump had endured 10 years of weaponization by state and federal officials, including the leak of his tax returns, which is what sparked the lawsuit.
“No American should be targeted for political reasons,” Bessent said. “Every citizen deserves equal treatment and full protection of the law.”
Newsom said aimed to prevent recipients from benefiting from any payouts.
“If you get a payout from Trump’s January 6 slush fund, California will tax it at 100%,” Newsom said. “People who assault cops and overthrow democracy don’t deserve a taxpayer-funded payday.”