Trump Tax Returns: Judge Blocks California Law, A Big Victory For Trump

A landmark California law that would have required candidates for president of the United States to disclose their tax returns for a spot on the presidential primary ballot has been temporarily set aside by a federal judge.

In issuing a temporary injunction against California's Senate Bill 27 (SB 27 or the Presidential Tax Transparency and Accountability Act), U.S. District Judge Morrison England Jr. said the law that took effect July 30 would bring “irreparable harm without temporary relief” for U.S. presidential candidates, including Donald Trump.

England said he’ll issue a final ruling by the end of the month but legal analysts said he also took the unusual step of issuing the temporary injunction in the interim. Trump sued California in August to block implementation of SB 27.

Signed by Gov. Gavin Newsom in July, SB-27 requires a candidate for President or Governor to file the candidate’s five most recent years of income tax returns with the California Secretary of State to have their names placed on California’s primary election ballot. Redacted versions of these tax returns will later be made available to the public.

SB 27 provides that candidates must submit tax returns no later than Nov. 26 to be eligible for the March 2, 2020 primary.

California argues the U.S. Constitution gives each state the authority to determine how that state’s electors are chosen. It said this authority is limited only by compliance with other constitutional provisions such as equal protection.

When it crafted the law, California said no other provision of the Constitution is implicated or violated by a state’s requirement a presidential candidate disclose tax returns.

England thought otherwise, however. He asked California's lawyers if the Ethics In Government Act (EIGA) preempts any additional rules a state might impose. This federal financial disclosure law passed in 1978 applies to the president and other top federal officials.

Trump filed an annual report in May that has an overview of his finances.

“Do we even need to get here if EIGA preempts (the new California law)?” asked England. “Is that it?”

Trump’s lawyers told England SB 27 will unfairly force Trump to give up his right of privacy to keep his tax returns confidential in order to participate in the March 2 primary.

California Secretary of State Alex Padilla, who is also the state's chief elections officer said California remains firm in its belief "SB 27 is constitutional and provides invaluable transparency for voters as they decide who will hold the most powerful office in the United States."

Padilla, who was named a defendant in the lawsuits, said he'll wait to see the written ruling before deciding whether to appeal.