Donald Trump hailed progress in the first day of trade talks between China and the US, fuelling optimism on markets
Donald Trump hailed progress in the first day of trade talks between China and the US, fuelling optimism on markets AFP / Brendan Smialowski

President Trump on Friday suffered his second setback this week in his bid to keep his tax records out of Democrats’ hands as an appellate court upheld a lower court decision and ordered him to turn over eight years of personal and corporate tax returns to Congress.

The U.S. Court of Appeals for the D.C. Circuit upheld Congress’ broad investigative powers and rejected his bid 2-1 to withhold the documents.

The decision follows Monday’s decision by a New York federal judge, ordering Trump to turn over eight years of tax returns to the Manhattan district attorney’s office. That decision has been stayed to allow Trump to appeal to the 2nd U.S. Circuit Court of Appeals in New York.

In Friday’s decision, the court rejected arguments Congress has no legitimate reason for demanding the returns. Trump could appeal to the full appellate court or the U.S. Supreme Court.

The House Reform and Oversight Committee subpoenaed Trump’s accountants, Mazars USA, earlier this year seeking the tax returns.

“Contrary to the president’s arguments, the committee possesses authority under both House rules and the Constitution to issue the subpoena, and Mazars must comply,” the appeals court panel wrote in its 66-page opinion.

“Having considered the weighty interests at stake in this case, we conclude that the subpoena issued by the committee to Mazars is valid and enforceable.”

The lone dissent was Judge Neomi Rao, who was appointed by Trump.

In the 68-page dissent, Rao said Congress does not have the power to investigate whether the president broke the law.

“When Congress seeks information about the president’s wrongdoing, it does not matter whether the investigation also has a legislative purpose,” Rao wrote. “Investigations of impeachable offenses simply are not, and never have been, within Congress’ legislative power.”

Rao said the subpoena represents an attempt to expand congressional powers:

“When the House chooses to investigate the president for alleged violations of the laws and the Constitution, it must proceed through impeachment. … The Constitution and our historical practice draw a consistent line between the legislative and judicial powers of Congress. The majority crosses this boundary for the first time by upholding this subpoena investigating the illegal conduct of the president under the legislative power.”

Trump is the first president in a half-century to refuse to publicly release his tax returns. During the 2016 campaign, he argued that since his returns are being audited by the IRS, he couldn’t release them, although there is no such provision in the law.

Critics say the returns could determine whether Trump’s decision-making might be influenced by foreign income.