Treasury Secretary Scott Bessent dismissed California Gov. Gavin Newsom's proposal to tax payouts from Trump's reparations fund as 'stupid.'

By Jasper Ward May 27 (Reuters) - California will impose a 100% tax on payments distributed under the Trump administration's nearly $1.8 billion fund for victims of alleged political "weaponization," the state's Governor Gavin Newsom announced on Wednesday.

President Trump had accused the Treasury Department and IRS of unlawfully allowing a government contractor to leak his tax returns and those of his sons and company.

The U.S. government has agreed to permanently drop tax claims against President Donald Trump, according to a settlement document that is part of a deal to resolve Trump’s $10 billion lawsuit against the Internal Revenue Service over the leak of his tax returns.

The Internal Revenue Service can’t bring claims against President Donald Trump, his family or businesses for past tax issues, according to additional terms added Tuesday to the settlement the Justice Department reached with Trump to resolve his $10 billion lawsuit against the IRS.

U.S. companies skirted at least $40 billion in taxes since the beginning of 2025 thanks to schemes in places like Malta, Bermuda and Cyprus.

Suspending the federal gasoline tax could save drivers up to 18.4 cents per gallon. But it would drain the fund meant to cover roadbuilding and repairs — a fund that's already in trouble.

A group of thirty-five former federal judges filed a motion in the U.S. District Court for the Southern District of Florida Wednesday, seeking to reopen President Donald Trump’s lawsuit against the IRS in order to block the $1.