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taxation
House Democrat Warns Trump on Verge of 'Largest Single Act of Grand Larceny in American History'
"Trump is considering stealing billions of dollars from the American people" with a $10 billion lawsuit against the IRS, said Rep. Don Beyer.
May 13, 2026
Democrats in Congress are warning that President Donald Trump is on the verge of "stealing" billions of dollars from American taxpayers in the coming days as his Department of Justice reportedly considers settling his lawsuit against the Internal Revenue Service.
The New York Times reported on Tuesday that the DOJ, headed by the Trump loyalist acting Attorney General Todd Blanche, was holding internal discussions about whether to settle the suit that was brought by Trump and his sons, as well as the family's business empire, in January.
The case centers on the IRS's leak of Trump's tax returns during his first term, which occurred after he broke decades of precedent by refusing to release them. The lawsuit alleges that the IRS failed to prevent former IRS contractor Charles Littlejohn from unlawfully disclosing tax information to media outlets, for which he pleaded guilty in 2024.
The leaks, reported by The New York Times and ProPublica, revealed that Trump had engaged in what was described as “outright fraud” and other “dubious” schemes to avoid taxation, and that he paid no federal income taxes in many of the years leading up to his presidency.
The Trumps are seeking a payout of at least $10 billion from the IRS, which is currently being headed by Trump's handpicked Social Security Administration head, Frank J. Bisignano, who reports to Treasury Secretary Scott Bessent.
This creates an extraordinary legal situation widely described as a blatant conflict of interest, since Trump is suing an IRS that he effectively controls, which is being represented by a DOJ he also effectively controls.
For a case to be valid, however, the parties must demonstrate that they are actually on opposite sides; otherwise, the case can be thrown out of court.
US District Judge Kathleen M. Williams of the Southern District of Florida, who is overseeing the case, questioned its constitutionality last month and required the parties to file briefs by May 20 demonstrating whether there is an actual conflict between them.
According to the Times, however, the DOJ is considering settling the case with Trump before that happens, and there'd be little Williams could do to stop it.
Not only could Trump walk away with a payout of several billion dollars—if not the full $10 billion he asked for—according to the Times, the White House and DOJ have also discussed a deal for the IRS to drop all audits into Trump, his family, and his businesses.
Presidents and vice presidents are required under IRS to undergo audits of their annual tax returns, and a 2024 Times report found that if Trump failed an audit, it could cost him more than $100 million.
Trump's presidency has been defined by him and his family profiting from their positions of influence. According to a live tracker from the Center for American Progress, Trump and his family have used the White House to rake in more than $2.6 billion worth of cash and gifts.
In addition to about $1.5 billion from their cryptocurrency ventures, which they've used the White House to promote, they have received direct gifts—like a $400 million luxury jet from the government of Qatar—and legal cash settlements from media and tech companies worth over $90 million. On top of the IRS lawsuit, Trump has also demanded that the DOJ pay him $230 million over past criminal investigations into him.
But if Trump received even a fraction of what he demanded in a payout from the IRS, it could make the graft from the first year and a half of his presidency look like pocket change, potentially netting him several billion more dollars and possibly even doubling his net worth.
"Trump is considering stealing billions of dollars from the American people," said Rep. Don Beyer (Va.), the ranking House Democrat on the Joint Economic Committee. "He's already the most corrupt president ever by a wide margin, but this would be fraud and theft on a scale even he has never attempted. The largest single act of grand larceny in American history."
Sen. Elizabeth Warren (D-Mass.), the ranking member on the Senate Banking, Housing, and Urban Affairs Committee, added that for the DOJ to hand Trump a settlement "before a court rules" would be a "massive, unprecedented scandal."
"Congress must stop him," the senator added, noting that she had introduced a bill last month that would bar presidents, vice presidents, and their families from collecting settlement payments from the federal government while in office. If they file administrative claims, Warren's bill would also require that the agencies be represented by independent counsels appointed by the court. However, her bill has gotten little traction in a Republican-controlled Congress.
Bharat Ramamurti, who served as the deputy director of the White House National Economic Council under former President Joe Biden, said the IRS lawsuit was a "massive scam" that was "much worse" than Trump's proposal for Congress to provide $1 billion in taxpayer money to pay for his White House ballroom project.
Of the IRS lawsuit, he said, "Democrats should raise hell over it."
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Trump War on Iran Sent Gas Prices Soaring—Now He Wants to Rob Highway Funds
"How about we start by suspending the biggest gas tax of them all, Trump’s illegal war in Iran," said US Senate candidate Graham Platner.
May 11, 2026
As President Donald Trump's ongoing war of choice on Iran sends US pump prices skyrocketing by 50%, the president and congressional Republicans are moving this week to suspend the federal gasoline tax—a proposal that critics note would reduce funding for the nation's deteriorating highway infrastructure.
Trump said Monday that he would push to suspend the 18.4-cent-per-gallon federal tax on gasoline and 24.4-cent diesel tax "until it's appropriate," as the average price for a gallon of regular gas has soared from just under $3 before the war to over $4.50 today.
Such a move would require congressional authorization. Sen. Josh Hawley (R-Mo.) on Monday introduced the Gas Tax Suspension Act, citing "record profits" reaped by "some of the biggest corporations in the world"—but not the root cause of the price spike, the illegal war itself.
Meanwhile in the House, Rep. Jeff Van Drew (R-NJ) on Monday introduced similar legislation, while calling on state lawmakers and Democratic Gov. Mikie Sherrill to also suspend New Jersey's roughly $0.49-per-gallon gas tax. Rep. Anna Paulina Luna (R-Fla.) also said Monday that she "will be introducing a bill in the House to suspend the federal gas tax in light of Trump’s recent remarks."
This, after Sens. Mark Kelly (D-Ariz.) and Richard Blumenthal (D-Conn.) and Rep. Chris Pappas (D-NH) in March introduced the Gas Prices Relief Act, which would suspend the 18.4-cent tax through October 1. Kelly's office noted the pain of "skyrocketing gas prices due to war in Iran" as the reason for the legislation. Rep. Brendan Boyle (D-Pa.) in April also proposed a similar bill.
"Never before in American history have we seen a 50% increase in the price of gas in such a short time," Boyle said during a Monday interview on MS NOW, adding that the Trump administration's "actions have caused this mess."
Republican support for a gas tax holiday marks a reversal from just four years ago, when they opposed then-President Joe Biden's call to suspend the tax after Russia launched its ongoing full-scale invasion of Ukraine. GOP lawmakers argued at the time that such a suspension would cause the delay or cancellation of critical infrastructure projects, as federal gas taxes provide the vast bulk of Highway Trust Fund money. Such arguments were nowhere to be seen from Republicans after Trump's Monday comments.
Democratic Senate candidate Graham Platner of Maine is pushing a multipronged approach to the issue. First, he is backing a permanent end to federal gas and diesel taxes, whose revenue would be replaced by increased taxation of billionaires.
"Relying on fossil fuels to fund basic infrastructure does not make sense if we want to reduce fossil fuels used in transportation," the climate-conscious candidate explained last week.
Platner's plan also calls for 50% per-barrel windfall tax on Big Oil profits, as well as a national freeze on electric rate increases.
Finally, Platner advocates addressing the number one current cause of high gas prices.
"How about we start by suspending the biggest gas tax of them all: Trump’s illegal war in Iran," he said Monday on X.
Most congressional Republicans and a few Democrats have refused to pass war powers resolutions intended to end Trump's assault—which the administration claims has been "terminated," despite continuing its naval blockade and conducting some alleged "self-defense" strikes during the current ceasefire.
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It's Crucial to Follow the Money on the National Debt
The point is that a big chunk of the growing interest payments American taxpayers make on the federal debt is going to wealthy Americans.
May 11, 2026
The U.S. national debt just crossed a once-unthinkable threshold on the way toward breaking the record set in the wake of World War II: It now exceeds 100 percent of America’s gross domestic product.
As of March 31, our publicly held debt was $31.27 trillion, while America’s GDP in 2025 was $31.22 trillion. This puts the ratio at 100.2 percent, compared with 99.5 percent when the last fiscal year ended September 30.
That 100.2 percent figure will likely climb, because the federal government is running historically large annual deficits of nearly 6 percent of GDP, which add to the debt. The final tally will depend on Iran war spending, tariff refunds, and the strength of the economy.
Should you worry? Well, it’s not as if we’re heading into a depression. Passing the 100 percent threshold won’t suddenly cause the world to lose confidence in the dollar.
The real problem is that an increasing portion of our nation’s budget—and your tax dollars—is dedicated to paying interest on this growing debt. That’s money we don’t spend on education, healthcare, roads and bridges, social safety nets, or (if we actually needed more spending on it) national defense.
As the debt continues to grow, interest payments continue to soar. We’ll soon be paying more in interest on the federal debt each year than we spend each year on Medicare.
So, who exactly receives these interest payments? This is an issue you hear very little discussion about, because the wealthy and powerful of this country would rather you didn’t know.
You probably do hear that a chunk of our debt is held by foreign governments and foreign investors. That’s true, but they hold only about 30 percent of our debt. The rest—roughly 70 percent—is held domestically. That is, we pay the interest to ourselves.
And who, exactly, is the “ourselves” who receive these interest payments? The Federal Reserve holds part of this debt, state and local governments hold part.
But the biggest chunk—nearly half—is held by mutual funds, pension funds, insurance companies, and banks. And who owns them? The Americans who invest in these funds—and who thereby, directly or indirectly, hold Treasury bills.
And who, exactly are these Americans—the Americans who are directly or indirectly collecting a large amount of the interest we’re paying on the national debt? It’s the people at the top.
The richest 1 percent of U.S. households hold about 35.6 percent of all financial assets—shares of stock, corporate bonds, and Treasury bills—so it’s safe to assume they hold at least a third of all Treasury bills.
What’s wrong with this picture?
Here’s where things get really interesting.
Decades ago, wealthy Americans financed the federal government mainly by paying taxes. Their tax rate was far, far higher than it is today. In the 1950s, under President Dwight Eisenhower, the richest Americans paid a marginal tax rate of 91 percent. (Tax deductions and tax credits meant that the top effective marginal rate was lower than this.)
Fast forward. Now, wealthy Americans finance the federal government mainly by lending it money and collecting interest payments on those loans.
Interest payments on the national debt this year are expected to reach $1 trillion.
There are roughly 128 million households in the United States. Dividing $1 trillion in annual interest among U.S. households would amount to $650 per household per month. (This is a simplified average, of course; actual burdens vary based on tax status, income, and spending.)
The point is that a big chunk of the growing interest payments American taxpayers make on the federal debt is going to wealthy Americans.
Keep following the money. One of the biggest reasons the federal debt has exploded is that tax cuts—starting with the George W. Bush administration in 2001 and extending through Trump’s 2018 and 2024 tax cuts—have reduced government revenues by $10.6 trillion.
Most of the benefits from those tax cuts are going to the wealthy. Since 2000, 65 percent of the benefits from tax cuts have gone to the richest fifth of Americans—22 percent to the top 1 percent.
So, you see what’s happened?
The wealthiest Americans used to pay higher taxes to finance the government. Now, the government pays wealthy Americans interest on a swelling debt, caused largely by lower taxes on wealthy Americans.
Which means a growing portion of everyone else’s taxes are now paying wealthy Americans interest on those loans, instead of paying for government services everyone needs.
So, from now on, whenever you hear someone say how huge, horrible, and out-of-control the national debt is, explain to them that it’s because of tax cuts to the wealthy—who are also the major recipients of interest on that debt.
America’s wealthy have never been wealthier. If they paid their fair share of taxes, we wouldn’t have such a huge federal debt. And we wouldn’t be paying them so much interest on that debt.
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