The decision was no surprise, with Mnuchin indicating earlier this week that he expected the dispute to be settled by the courts
The Trump administration on Friday rejected House Democrats’ subpoena for the president’s tax returns, pushing the two sides closer to a major court fight.
In a letter to House Ways and Means Chairman Richard Neal (D-Mass.), who issued the subpoena last week, Treasury Secretary Steven Mnuchin reiterated what he told Neal in earlier letters: The administration does not believe Democrats have a “legitimate legislative” reason for seeking the tax filings.
“For the same reasons, we are unable to provide the requested information in response to the committee’s subpoena,” he said.
The decision was no surprise, with Mnuchin indicating earlier this week that he expected the dispute to be settled by the courts. Also, the administration is defying subpoenas from Democrats on several other fronts.
The announcement shifts the focus back to the House, where Democrats intend to try to enforce their subpoena.
They have not said exactly how they intend to do that — that will be up to SpeakerNancy Pelosi (D-Calif.). She could have the entire chamber vote to authorize the House general counsel, Douglas Letter, to file suit against the administration. Another potential, and likely faster, option would be to have a group of House leaders known as the Bipartisan Legal Advisory Group vote to authorize the suit, though there are questions about whether that is allowable under the chamber’s rules.
Either way, a Democratic aide said, it will likely be weeks before a suit is filed in court.
"Given the Treasury Secretary’s failure to comply today, I am consulting with counsel on how best to enforce the subpoenas moving forward," Neal said in a statement Friday, noting that a subpoena was also issued to IRS Commissioner Chuck Rettig.
"Issuance of these subpoenas should not have been necessary," he said. "The law provides clear statutory authority for the Chair of the Ways and Means Committee to request and receive access to tax returns and return information."
Neal has been demanding six years worth of Trump’s personal tax records, along with those of several of his businesses, since early April.
Democrats, complaining Trump has thumbed his nose at a decades-old tradition of presidents voluntarily releasing their tax filings, are trying to seize his records by relying on a 1924 law allowing the heads of Congress’s tax committees to examine anyone’s confidential tax information.
Republicans say Democrats just want to search Trump’s taxes for things they can use to embarrass him politically. They are pointing to court decisions in which judges have said lawmakers’ investigations must have some purpose related to their official duties as policymakers.
The administration is likely to try to drag out any court fight in hopes of pushing the issue beyond the 2020 elections. By then, Republicans may retake the House, allowing them to quash the suit. Trump could be in his second term by then, when the issue will be less important, or he could be voted out of office next year.