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| Mnuchin Says White House and Treasury Discussed Trump Tax Return Request | Mnuchin Says White House and Treasury Discussed Trump Tax Return Request |
| (about 3 hours later) | |
| WASHINGTON — Treasury Secretary Steven Mnuchin told lawmakers on Tuesday that White House lawyers had been in touch with his department about a congressional request for President Trump’s tax returns but said he had not personally spoken to Mr. Trump or those lawyers about how the matter was being handled. | WASHINGTON — Treasury Secretary Steven Mnuchin told lawmakers on Tuesday that White House lawyers had been in touch with his department about a congressional request for President Trump’s tax returns but said he had not personally spoken to Mr. Trump or those lawyers about how the matter was being handled. |
| Mr. Mnuchin’s disclosure is the first public acknowledgment of communication between the White House and the Treasury Department related to Mr. Trump’s tax returns and underscores the seriousness with which the president is taking the request for his personal financial records. | Mr. Mnuchin’s disclosure is the first public acknowledgment of communication between the White House and the Treasury Department related to Mr. Trump’s tax returns and underscores the seriousness with which the president is taking the request for his personal financial records. |
| Mr. Mnuchin, who is testifying before two congressional committees on Tuesday, acknowledged that White House lawyers had been in touch with his department before the formal request was made last week. But he said that he had not been briefed on those discussions and described them as “informational.” | Mr. Mnuchin, who is testifying before two congressional committees on Tuesday, acknowledged that White House lawyers had been in touch with his department before the formal request was made last week. But he said that he had not been briefed on those discussions and described them as “informational.” |
| “Our legal department has had conversations prior to receiving the letter with the White House general counsel,” Mr. Mnuchin said. “I acknowledge there were conversations. I am not briefed on the full extent of those conversations.” | “Our legal department has had conversations prior to receiving the letter with the White House general counsel,” Mr. Mnuchin said. “I acknowledge there were conversations. I am not briefed on the full extent of those conversations.” |
| Mr. Mnuchin’s statement sent Democratic congressional aides scrambling to assess whether conversations between the White House and the Treasury Department about Mr. Trump’s taxes represented political interference and violated the law. | |
| But Lawrence Gibbs, a former I.R.S. commissioner and counsel during the Nixon administration, said he was aware of no legal statute that prohibited such dialogue. | |
| Mr. Mnuchin said that he thought it was “appropriate” for the Treasury and White House legal departments to have spoken generally about a potential request, but he emphasized that he would not be taking direction from Mr. Trump on the decision. | |
| “We would not ever ask for the White House’s permission on this, nor did they give us permission,” Mr. Mnuchin said. | |
| Mr. Mnuchin said it would be “premature” to comment on how his agency would respond to the formal request by House Democrats for six years of Mr. Trump’s personal and business tax returns. | Mr. Mnuchin said it would be “premature” to comment on how his agency would respond to the formal request by House Democrats for six years of Mr. Trump’s personal and business tax returns. |
| “It is our intent to follow the law,” Mr. Mnuchin said. “It is being reviewed by the legal departments and we look forward to responding to the letter.” | “It is our intent to follow the law,” Mr. Mnuchin said. “It is being reviewed by the legal departments and we look forward to responding to the letter.” |
| But when pressed by House Democrats, Mr. Mnuchin suggested he believed that Congress was overreaching its authority and defended Mr. Trump’s right not to release his tax returns. | But when pressed by House Democrats, Mr. Mnuchin suggested he believed that Congress was overreaching its authority and defended Mr. Trump’s right not to release his tax returns. |
| “The general public when they elected President Trump made the decision to elect him without his tax returns being released,” Mr. Mnuchin said, adding that the president complied with requirements to release a financial disclosure form. | “The general public when they elected President Trump made the decision to elect him without his tax returns being released,” Mr. Mnuchin said, adding that the president complied with requirements to release a financial disclosure form. |
| The request for Mr. Trump’s tax returns is putting Mr. Mnuchin, one of his most loyal aides, at the center of what is shaping up to be an extraordinary legal battle between two branches of the United States government. | The request for Mr. Trump’s tax returns is putting Mr. Mnuchin, one of his most loyal aides, at the center of what is shaping up to be an extraordinary legal battle between two branches of the United States government. |
| A decision on whether to turn Mr. Trump’s tax returns over to Congress is expected to fall to the Internal Revenue Service and Mr. Mnuchin, whose Treasury Department oversees the tax collection agency. While Mr. Mnuchin has been fairly cautious in discussing the request, Mr. Trump and his top advisers have made it increasingly clear that they will not allow the president’s tax returns to be released without a fight. | A decision on whether to turn Mr. Trump’s tax returns over to Congress is expected to fall to the Internal Revenue Service and Mr. Mnuchin, whose Treasury Department oversees the tax collection agency. While Mr. Mnuchin has been fairly cautious in discussing the request, Mr. Trump and his top advisers have made it increasingly clear that they will not allow the president’s tax returns to be released without a fight. |
| Mr. Mnuchin suggested that an attempt to obtain tax returns for political purposes could ultimately harm both parties and give lawmakers discretion to obtain financial records of political enemies. Mr. Mnuchin noted that Representative Kevin Brady of Texas, who was the Republican chairman of the Ways and Means committee during the Obama administration, did not make such requests. | Mr. Mnuchin suggested that an attempt to obtain tax returns for political purposes could ultimately harm both parties and give lawmakers discretion to obtain financial records of political enemies. Mr. Mnuchin noted that Representative Kevin Brady of Texas, who was the Republican chairman of the Ways and Means committee during the Obama administration, did not make such requests. |
| “I am sure there are many prominent Democrats who are relieved that when Kevin Brady was chairman of the committee that he didn’t request specific returns,” Mr. Mnuchin said. | “I am sure there are many prominent Democrats who are relieved that when Kevin Brady was chairman of the committee that he didn’t request specific returns,” Mr. Mnuchin said. |
| Mr. Mnuchin’s turn in the spotlight comes at a delicate moment for the Treasury secretary. Mr. Mnuchin, one of the longest-serving members of Mr. Trump’s cabinet, has been dogged in recent weeks by questions over his financial ties to the film industry, as well as questions surrounding the Treasury Department’s removal of sanctions against a trio of companies controlled by an influential Russian oligarch. Mr. Mnuchin has also been at the center of Mr. Trump’s growing frustration with the Federal Reserve, which he publicly blames for slowing American economic growth. Mr. Trump has aimed much of his criticism at the Fed chairman, Jerome H. Powell, whom the president installed to the top job on the recommendation of Mr. Mnuchin. | Mr. Mnuchin’s turn in the spotlight comes at a delicate moment for the Treasury secretary. Mr. Mnuchin, one of the longest-serving members of Mr. Trump’s cabinet, has been dogged in recent weeks by questions over his financial ties to the film industry, as well as questions surrounding the Treasury Department’s removal of sanctions against a trio of companies controlled by an influential Russian oligarch. Mr. Mnuchin has also been at the center of Mr. Trump’s growing frustration with the Federal Reserve, which he publicly blames for slowing American economic growth. Mr. Trump has aimed much of his criticism at the Fed chairman, Jerome H. Powell, whom the president installed to the top job on the recommendation of Mr. Mnuchin. |
| Pressed by Representative Maxine Waters of California, who chairs the House Financial Services Committee, about Mr. Trump’s penchant for firing cabinet members, Mr. Mnuchin said on Tuesday that job security would not be a factor in how he manages the fight for Mr. Trump’s taxes. | |
| “I am not afraid of being fired at all,” Mr. Mnuchin. | |
| Mr. Mnuchin’s handling of the matter will be watched closely by Mr. Trump, who has kept his tax returns closely guarded despite promises as a candidate to eventually release them. Democrats are using a little-noticed provision of the tax code to request the documents, and the Trump administration has asserted that those efforts are outside the bounds of congressional authority and that the request is nothing more than political harassment. Last week, Representative Richard E. Neal, the Massachusetts Democrat who leads the House Ways and Means Committee, requested that the I.R.S. hand over six years of Mr. Trump’s tax returns. | Mr. Mnuchin’s handling of the matter will be watched closely by Mr. Trump, who has kept his tax returns closely guarded despite promises as a candidate to eventually release them. Democrats are using a little-noticed provision of the tax code to request the documents, and the Trump administration has asserted that those efforts are outside the bounds of congressional authority and that the request is nothing more than political harassment. Last week, Representative Richard E. Neal, the Massachusetts Democrat who leads the House Ways and Means Committee, requested that the I.R.S. hand over six years of Mr. Trump’s tax returns. |
| “The Democrats will never be satisfied, no matter what they get, how much they get, or how many pages they get,” Mr. Trump said in a Twitter post on Monday. “It will never end, but that’s the way life goes!” | “The Democrats will never be satisfied, no matter what they get, how much they get, or how many pages they get,” Mr. Trump said in a Twitter post on Monday. “It will never end, but that’s the way life goes!” |
| Mick Mulvaney, the president’s acting chief of staff, said over the weekend that Democrats would “never” obtain the president’s taxes and called their efforts “a political hit job.” | Mick Mulvaney, the president’s acting chief of staff, said over the weekend that Democrats would “never” obtain the president’s taxes and called their efforts “a political hit job.” |
| Last Friday, Mr. Trump’s personal lawyer asserted Mr. Trump’s right as a citizen to keep his tax returns private and told the Treasury Department not to hand the returns over to House Democrats. | Last Friday, Mr. Trump’s personal lawyer asserted Mr. Trump’s right as a citizen to keep his tax returns private and told the Treasury Department not to hand the returns over to House Democrats. |
| Mr. Mnuchin and the I.R.S. have until the end of Wednesday to comply with Mr. Neal’s request, based on a deadline the lawmaker outlined last week. What comes next depends on their answer. The Treasury secretary told reporters after the hearing that it would be a “good guess” that his department would respond to the request by the Wednesday deadline. | Mr. Mnuchin and the I.R.S. have until the end of Wednesday to comply with Mr. Neal’s request, based on a deadline the lawmaker outlined last week. What comes next depends on their answer. The Treasury secretary told reporters after the hearing that it would be a “good guess” that his department would respond to the request by the Wednesday deadline. |
| If the I.R.S. complies, Mr. Neal is unlikely to immediately say anything else to the public. If the agency objects to the request or does not answer, Mr. Neal could press his case and warn the agency that House Democrats will view not handing over the documents as a violation of the law. | If the I.R.S. complies, Mr. Neal is unlikely to immediately say anything else to the public. If the agency objects to the request or does not answer, Mr. Neal could press his case and warn the agency that House Democrats will view not handing over the documents as a violation of the law. |
| At that point, Mr. Neal is likely to turn to the courts to try to enforce his request, teeing off a legal battle that could take months or years to sort out and could wind up at the Supreme Court. | At that point, Mr. Neal is likely to turn to the courts to try to enforce his request, teeing off a legal battle that could take months or years to sort out and could wind up at the Supreme Court. |
| Representative Tom Suozzi, Democrat of New York and a member of the Ways and Means Committee, said Monday that he believed the I.R.S. would not comply with Mr. Neal’s request and would seek instead to further “politicize” the issue. He said he expected Mr. Neal to turn to the courts to try to force compliance with the law. | Representative Tom Suozzi, Democrat of New York and a member of the Ways and Means Committee, said Monday that he believed the I.R.S. would not comply with Mr. Neal’s request and would seek instead to further “politicize” the issue. He said he expected Mr. Neal to turn to the courts to try to force compliance with the law. |
| “Mnuchin obviously has a very close relationship with the president, he is very loyal to the president,” Mr. Suozzi said in an interview. “But he has an oath of office that requires him to follow the law. And I believe the law is very clear here. It could be damaging to his and other people’s reputations if they were to try to interfere with their obligation.” | “Mnuchin obviously has a very close relationship with the president, he is very loyal to the president,” Mr. Suozzi said in an interview. “But he has an oath of office that requires him to follow the law. And I believe the law is very clear here. It could be damaging to his and other people’s reputations if they were to try to interfere with their obligation.” |
| Congressional Republicans have taken a starkly different stance. | Congressional Republicans have taken a starkly different stance. |
| On Monday, Representative Kevin Brady of Texas, the top Republican on the Ways and Means Committee, called the quest for Mr. Trump’s taxes a “fishing expedition” and said Americans would come to regret it if members of Congress could obtain private tax information for political purposes. | On Monday, Representative Kevin Brady of Texas, the top Republican on the Ways and Means Committee, called the quest for Mr. Trump’s taxes a “fishing expedition” and said Americans would come to regret it if members of Congress could obtain private tax information for political purposes. |
| “The president is absolutely right to be fighting this,” Mr. Brady said on Fox News. “This is not a legitimate request. It has no legal, legislative purpose.” | “The president is absolutely right to be fighting this,” Mr. Brady said on Fox News. “This is not a legitimate request. It has no legal, legislative purpose.” |
| Mr. Mnuchin has been more cautious when discussing the looming battle. In an interview in October, he said that if Democrats won the House and requested the tax returns, he would work with the general counsels for the Treasury Department and the I.R.S. to determine if the request was legal. | Mr. Mnuchin has been more cautious when discussing the looming battle. In an interview in October, he said that if Democrats won the House and requested the tax returns, he would work with the general counsels for the Treasury Department and the I.R.S. to determine if the request was legal. |
| At a congressional hearing last month, however, Mr. Mnuchin was more explicit, saying that protecting taxpayer privacy was paramount. | At a congressional hearing last month, however, Mr. Mnuchin was more explicit, saying that protecting taxpayer privacy was paramount. |
| “We will protect the president as we would protect any individual taxpayer under their rights,” Mr. Mnuchin said. | “We will protect the president as we would protect any individual taxpayer under their rights,” Mr. Mnuchin said. |
| If the fight over Mr. Trump’s tax returns drags on, Mr. Mnuchin will most likely be navigating it without two of his closest aides. The secretary announced last week that Eli Miller, his chief of staff, was departing. Tony Sayegh, Mr. Mnuchin’s top communications official, is also expected to leave in the coming months. Politico first reported that Mr. Sayegh had been interviewing potential successors. | If the fight over Mr. Trump’s tax returns drags on, Mr. Mnuchin will most likely be navigating it without two of his closest aides. The secretary announced last week that Eli Miller, his chief of staff, was departing. Tony Sayegh, Mr. Mnuchin’s top communications official, is also expected to leave in the coming months. Politico first reported that Mr. Sayegh had been interviewing potential successors. |
| Mr. Mnuchin is also operating without an under secretary for international affairs. David Malpass, who held that position, was approved last week to lead the World Bank. The top domestic policy position at the Treasury Department continues to go unfilled. And Mr. Mnuchin’s assistant secretary for legislative affairs has yet to be confirmed. | Mr. Mnuchin is also operating without an under secretary for international affairs. David Malpass, who held that position, was approved last week to lead the World Bank. The top domestic policy position at the Treasury Department continues to go unfilled. And Mr. Mnuchin’s assistant secretary for legislative affairs has yet to be confirmed. |
| Mr. Mnuchin might try to defer a decision on Mr. Trump’s taxes to the department’s lawyers, but ultimately he will probably have to weigh in. | Mr. Mnuchin might try to defer a decision on Mr. Trump’s taxes to the department’s lawyers, but ultimately he will probably have to weigh in. |
| Former I.R.S. officials have suggested that privacy will be Mr. Mnuchin’s strongest argument and that the administration will probably look to undercut the nature of the House Democrats’ request for the returns as part of the committee’s oversight of “the extent to which the I.R.S. audits and enforces the federal tax laws against a president.” | Former I.R.S. officials have suggested that privacy will be Mr. Mnuchin’s strongest argument and that the administration will probably look to undercut the nature of the House Democrats’ request for the returns as part of the committee’s oversight of “the extent to which the I.R.S. audits and enforces the federal tax laws against a president.” |
| Mr. Gibbs noted that the provision Democrats were using to seek Mr. Trump’s returns was drafted when the tax code was being rewritten to improve protection of taxpayer privacy. Despite the language in the code, which appears to clearly give Congress the power to access anyone’s tax returns, a request that is political in nature could ultimately be shot down by the Supreme Court. | |
| “This goes way beyond the president,” Mr. Gibbs said. “If our politicians, at either end of Pennsylvania Avenue, can obtain taxpayer information, taxpayers have to wonder if there really is confidentiality anymore.” | “This goes way beyond the president,” Mr. Gibbs said. “If our politicians, at either end of Pennsylvania Avenue, can obtain taxpayer information, taxpayers have to wonder if there really is confidentiality anymore.” |