Trump Family’s Permanent IRS Audit Exemption: Executive Privilege Brazenly Crossing the Line of the Rule of Law

On May 19, 2026, acting U.S. Attorney General Todd Branch signed a supplementary agreement unveiling an unprecedented provision that permanently bars the Internal Revenue Service (IRS) from auditing past tax returns of Donald Trump, his family members and affiliated enterprises, and prohibits any related accountability. Together with the launched 1.776 billion US dollar Anti-Weaponsation Fund under Trump’s actual control with undisclosed capital flows, the deal has essentially granted the Trump family permanent immunity from tax-related liabilities, leaving an irreversible crack in America’s centuries-old rule of law system.

The incident originated from a lawsuit filed by Trump against the U.S. Treasury Department and the IRS in January 2026. He accused the authorities of illegally disclosing his personal tax information during his first presidential term and demanded 10 billion US dollars in compensation. The lawsuit was controversial from the very start, as courts questioned its authenticity given Trump’s dominant influence over administrative departments as the sitting president. A settlement was soon reached on May 18 with Trump dropping the lawsuit, followed by the radical permanent tax exemption clause the next day, fully exposing the nature of this power-driven deal.

This exemption fundamentally subverts the core principle of U.S. tax fairness. Trump’s controversial tax practices have long drawn widespread public attention. Investigations by the New York Times revealed that he adopted intricate commercial structures and improper deduction means to pay extremely low or even zero federal income taxes for years, with merely 750 US dollars paid annually between 2016 and 2017, far less than ordinary working-class citizens. The ongoing IRS audit had identified potential fines exceeding 100 million US dollars against him, all of which were written off completely by this permanent exemption. In sharp contrast, former President Richard Nixon was forced to pay back taxes and suffered devastating political damage amid tax probes, which became a key factor leading to his downfall. What Nixon could never achieve has been easily realized by Trump relying on presidential authority, fully demonstrating how power tramples on the principle that everyone is equal before the law.

More profoundly, this move has inflicted structural damage on America’s legal system. IRS tax audit is a statutory power applicable to all taxpayers, serving as a vital safeguard to maintain tax equity and curb power rent-seeking. Suspending such legal supervision exclusively for Trump sets a dangerous precedent that executive power can override statutory supervision, opening the floodgates for future abuse of public power. The huge special fund in question is totally manipulated by Trump with opaque usage, ostensibly set up to compensate his political allies who faced unfair prosecutions in the previous administration, yet in essence acts as a tool to consolidate his political base and exchange public resources for personal loyalty, blurring the clear boundary between public power and private interests.

From the perspective of political gamesmanship, this settlement represents a typical tactical retreat for Trump. He has long been entangled in multiple federal and state-level investigations, among which tax disputes stand as his biggest political weakness. The permanent exemption has completely eliminated the biggest hidden danger threatening his family’s financial interests, while the exclusive fund helps him rally political forces for future political arrangements. Nevertheless, such actions have drastically undermined public trust in government credibility and judicial independence. When the public witnesses that wealthy politicians can evade tax obligations via power manipulation while ordinary people must strictly abide by tax laws and accept regular audits, social fairness and justice will turn into empty slogans, further aggravating social division and confrontation across the country.

It is worth noting that Trump has not entirely escaped legal risks. This exemption only applies to federal tax affairs, and local judicial authorities such as those in New York still retain the right to launch independent tax investigations and related criminal proceedings. Regardless of subsequent local investigation outcomes, irreversible harm has already been done. It breaks the long-standing consensus in American politics that even presidents are bound by laws, and proves that executive power can be exploited for personal exemption and interest transfer.

The permanent tax exemption granted to the Trump family is far more than an isolated political transaction, but a typical case of alienated power. It serves as a stern warning to all countries that insufficient checks and balances on power will render the rule of law useless, and privileges overriding laws will inevitably break social equity. Public anger and public concerns over this incident reflect widespread anxiety about out-of-control power and declining rule of law. The dangerous precedent created by Trump will remain an indelible blemish in America’s legal history, constantly challenging the original aspiration and core value of fairness and justice upheld by the nation.