Trump's massive new corruption would make 1870s Great Barbecue era crooks blush

American political history is rife with examples of corruption. The period after the Civil War was known then as the Great Barbecue, when ethics broke down in public life. There were embezzling treasurers, bribe-giving lobbyists, purchased newspapermen, and swindlers at the public trough. But the Trump administration has just tried to pull off a corrupt deal so brazen it would make Reconstruction-era crooks blush. Good people, including West Virginia’s Congressional delegation, cannot look the other way.

In West Virginia, we’ve had our share of corruption, but usually we have been able to right the ship and send the scoundrels packing, sometimes off to jail. Neither political party is immune. We’ve sent Governors Wally Barron (a Democrat) and Arch Moore (a Republican) to prison. And the entire political structure of Logan County has to be cleaned out periodically. But Trump’s lawsuit against the Internal Revenue Service and his proposed settlement are something else entirely. They set up a massive raid on the U.S. Treasury to be paid for by taxpayers.

Trump v. Internal Revenue Service

Most Presidential candidates disclose their tax returns. Trump frequently promised to do so, but never did. No wonder. In 2016 and again in 2017, Trump, a billionaire, paid $750 in taxes. In 10 of the previous 15 years, he paid no taxes whatsoever. We know this because a contractor for the IRS copied and then disclosed Trump’s tax returns to the news media. This was a crime, and the contractor is now serving a five-year sentence.

In January 2026, Trump sued the Treasury Department and the Internal Revenue Service for $10 billion. He did this as a private citizen, not as president. In his lawsuit, Trump claimed that the contractor was an IRS employee who was improperly supervised. But the last time I checked, President Trump was in charge of the entire executive branch, including the Treasury Department and the IRS. He appointed the Secretary of the Treasury and the Commissioner of the IRS and can remove them whenever they displease him. So Trump is essentially suing himself. But wait, the cheese gets even stinkier.

A court has no jurisdiction over a made-up controversy because there is no true adversity to resolve. That would include situations where one party is trying to sue himself, say to recover insurance money. When Trump v. IRS was filed, the judge questioned whether this was just such a made-up case. But before the Justice Department answered the judge’s concern, or put up the first defense, the parties announced that they had “settled” the case and asked the judge to dismiss it. The lawyers for the American people caved to a lawsuit filed by their boss without a fight.

Terms of the settlement

Neither Trump’s lawyers nor the Justice Department disclosed the settlement agreement to the judge. If they had, she would have seen that Trump demanded a $1.776 billion fund to compensate people he believes were unfairly treated by the federal government, including the people who were involved in the Jan. 6 riot at the U.S. Capitol. These are the same people who attacked police, paraded through the Capitol with Confederate flags, and defecated on the floor. Many of them were convicted of federal crimes for this, but were later pardoned by our President. This giveaway would be funded by U.S. taxpayers.

In response to a huge backlash on this proposed compensation fund for criminals, even from his own party, Trump is backing down — for now. This followed a ruling in Virginia on May 29 that halted any activity to set up the fund or make payments from it. But in testimony before Congress, Todd Blanche, acting head of the Justice Department, refused to put in writing that the Trump Administration is abandoning the idea permanently.

There is a second aspect of the settlement Trump refuses to abandon that is blatantly corrupt. Trump demanded a provision in the settlement agreement that the U.S. be “forever barred and precluded” from examining or prosecuting Trump, his sons and the Trump Organization over past tax filings. This is complete overreach. Immunity from past tax infractions has nothing to do with the leak of Trump’s tax returns, which was the reason for the lawsuit in the first place. But the Justice Department was happy to give Trump anything he wanted.

An IRS inquiry now pending could reveal that Trump owes over $100 million in tax liability, penalties, and interest. Who will make up for the shortfall in revenue if these millions aren’t paid? The taxpayers will. The Wall Street Journal has called this deal “extraordinary and unprecedented.” The New York Times called the immunity from audit a “staggering public benefit.” Why should Trump get a deal no other taxpayer can get, at huge taxpayer expense, to settle a made-up lawsuit? He got this self-serving deal because he controls almost everyone involved in making it.

Where we go from here

But Trump does not control the federal judge who is presiding in the case. She received a friend-of-the-court filing from numerous retired judges who pointed out that Trump and the Justice Department colluded in settling and committed fraud on the court, enabling her to reopen the case. She has set a hearing on these issues for June 12, 2026, and the tone of her order indicates she is not pleased.

The West Virginia Congressional delegation can also play a role in rectifying this corruption.

• Trump announced that he intends to make Blanche “permanent Attorney General.” Given Blanche’s glaring public disservice and conflicts of interest, West Virginia’s Senate delegation should reject him.
• Trump’s supporters in Congress are desperately trying to solve the funding problem for ICE. West Virginia’s Congressional delegation should join in the bipartisan effort to oppose any budget reconciliation until Trump withdraws his lawsuit against the IRS without the compensation fund for criminals or immunity from IRS tax inquiries.

One thing we should have learned by now is that corruption can fester only so long as we allow it. The corrupt settlement deal proposed by the Trump Administration is plainly wrong. Anyone can see that.

West Virginia Watch is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. West Virginia Watch maintains editorial independence. Contact Editor Leann Ray for questions: info@westvirginiawatch.com.