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B
Sure. I was born in a log cabin. One day I was looking at my phone and a signal pops up and guy wanted to get in touch with me. It's a tip like I get many times a week. And this one turned out to be the greatest tip I've ever had. Eventually, the. The guy leaked to us the tax information for all of the wealthiest people in America. All the household names that you could imagine. Jeff Bezos, Michael Bloomberg, George Soros, Warren Buffett, Bill Gates, et cetera, et cetera, Elon Musk. And then we gathered a huge team at ProPublica to report on the tax returns. And Paul Keel was my partner in this. And we eventually, over years, published over 50 stories based on these returns about the tax avoidance strategies of the wealthy. And the big picture is, surprise, surprise. The lay understanding of our tax system is that it's extraordinarily unfair and that people who are extremely wealthy avoid taxes in myriad ways, some of them entirely legal and very simple to do. What we did was very powerful because we named names. So we showed that Jeff Bezos had literally paid zero in taxes for two years when he was a billionaire, and Michael Bloomberg paid zero in taxes, and Carl Icahn paid zero. And what we also showed is that they pay just trifling sums of taxes compared to their wealth growth. So they avoid income, and. And by avoiding income, they avoid taxes and their wealth grows and grows. And then often they borrow against their wealth to fund their lifestyles.
A
At the time that you were reading your story, you didn't know the identity of the person who was leaking to you. But later he was caught, he was arrested and so you found out his identity?
B
Yes. Yeah, he was a contractor for the irs, working for a consulting firm, Booz Allen. He's a guy named Charles Littlejohn. And he had actually leaked the Trump tax returns to the New York Times and provided them with the information to write their blockbuster story on Trump's tax avoidance strategies. Huge, important public service. And then he realized that the problem of tax avoidance was much bigger than one person and wanted to expose the tax avoidance strategies of the wealthiest among us. And that's when he came to us. He had seen Paul and I had done a series, series of stories. I like to think of it as the, the least read, most boring, investigated series of all time, which was about the gutting of the irs. But one person who was very important actually read that, which was Charles Littlejohn. And he, unbeknownst to us, we didn't know his identity. As you just said, he gave us the tax returns. And then that actually got him caught. If he had just leaked the tax returns of Trump, he wouldn't have gotten caught, he would gotten away with it.
A
Was it just because now he had accessed more, it was easier to cross reference?
B
Yeah, it was much easier to figure out where it came from. And one person's tax returns could have come from so many different areas that the IRS didn't even occur to them to kind of do a search for that kind of query. But the massive queries that Little John had done just stuck out. They're very obvious. And so the IRS figured it out. They charged him, he pled guilty and is now serving a five year prison sentence, which is the longest sentence for anyone who leaked non classified information in American history for what I consider to be a great public service. So I consider him to be a whistleblower of great importance.
A
And so I remember Trump had been the first presidential candidate in a long time to not voluntarily disclose his tax returns. People had a lot of questions about whether he was paying taxes, like about his money. And so I remember the moment that his tax return was published. I remember the reporting that you guys did about just sort of the, the way the wealthy were engaging in tax avoidance at the time of like that reporting, as you're working on it, what was your sort of like if you'd stopped and thought, I don't know if you did, but like, the best case scenario of like Trump's tax return is gonna come to light, all These other people's tax strategies are gonna come to light. Like, what was the, like, hopeful outcome of what all that could mean?
B
Yeah, well, I don't really operate with
A
a lot of hope.
B
It's not my. I don't wake up in the morning just to think what changes will make American society better today. I can't wait to see them. But, you know, I think the system should be reformed and can be reformed. The wealthiest pay more. And so you take somebody like Donald Trump, and one of the things that was. I was shocked by it, and I refused to not be shocked by these things, and I refused to kind of succumb to cynicism, is that he literally did not pay taxes for years and years. And it turns out that he's not alone. Because commercial real estate billionaires can pay zero in taxes. It's because they. It's a simple reason, is that they get to say that their buildings are losing value. It's just an accounting fiction. But in fact, what's happening is the buildings are appreciating in value.
A
That tends to be what happens to property. Yeah.
B
Especially in New York. Right. And so the properties go up in value. But these billionaires sometimes can say to the IRS, I'm personally losing $100 million a year. You see these people with these ludicrous, absurd statements of nine figure losses on income. And so that's the magic of accounting. So there are billionaires often who pay zero in federal income tax, but the more important thing was that they pay very little as a fraction of their kind of overall wealth growth.
A
And so I think one of the feelings, I just, as a, as a, as a person who wonders about the inner lives of other people, including the president, one of the things I'd wondered about was like, honestly, like, did he care? You know what I mean? I was like, does he care? Can you tell me about the nudes this week?
B
Yeah. So, I mean, I don't know if he has much of an inner life. The president, did he care? You mean, was he upset or offended about having his taxes leaked? Yeah, he, Trump, repeatedly acted as if he was violated for this. Now, as you just said, what he was doing was violating a norm of behavior that had lasted for about 50 years for major presidential candidates. They released their tax returns. So underlying that leak was this extraordinary violation of what we think is a fundamental kind of aspect of transparency when we come to our major political leaders. So what he did was he waited for a while and then he sued the IRS in one of the most extraordinary actions that any president has taken in American history.
A
So tell me about why that's extraordinary. Tell me about the lawsuit. Like what was unusual about the lawsuit?
B
Yeah, it was so mind bending and weird and outrageous. It's actually pretty hard to kind of understand what happened. But what he did was he, in his personal capacity, sued the federal government, which he runs for $10 billion for having allowed the leak of his tax returns.
A
So he, the private citizen, is suing the government, but he's essentially he's on both sides of that lawsuit.
B
Right. There had to be steps that were taken before he could even effectuate this lawsuit. And the first step was that he's taken over the executive branch of the federal government, the administrative state of the federal government. Obviously he is the executive. He was legitimately elected.
A
But.
B
But we had norms of independence for our federal agencies that had grown up really in the post Watergate era, but had been developing for a long time. The idea of an independent civil service had been developed for well over a hundred years. And what Trump said was, no, I control everything. There is no such thing as an independent agency. There is no such thing as a nonpartisan civil service. I have control over every agency, including the Department of Justice, which had really acted very independently since Watergate. But it turned out it was just a norm. It was just tissue paper. And once you tore it up, there was nothing left standing. And the Supreme Court essentially allowed him to act in this way as the executive with power over the agencies. So that was step one.
A
Yeah.
B
Step two was to take control of the Republican Party so much that Congress was supine and has been throughout the second administration. So he had to have those two things in place. And then once he had that in place, what he could do was sue the federal government. So the Department of Justice was responding to his suit on behalf of the Treasury Department and the irs. And then they were in a position where they were purportedly adversarial.
A
And.
B
And it went to a judge and the judge said, explain to me how this is an adversarial process.
A
Because like in theory, if I were like got in over my head on my like buying designer button up shirts on ebay habit and I was like in trouble and I like sued search engine, the business that I co run and then went to court, a judge would be like this doesn't you. You can't be in a fight with search engine. Like if you want to take money from search engine, take money from search engine. But you can't say that you are fighting with search eng and the Court has to provide relief because obviously you don't have an adversarial relationship to Search engine.
B
I think that was a pretty good analogy. But, like, not even punch it out. Didn't even get to.
A
I mean, like,
B
it's so circular. It's so weird. You know, you can imagine that you're engaged in an adversarial process with your employer, but this is like, it's like suing yourself over having bought too many shirts.
A
Obviously, it's not a terrible idea.
B
Yeah, exactly, exactly. Some kind of personal constraint, you know, I. The analogies. The analogies are hard.
A
Are we out past the land of analogies? Because we're in a place that is too strange.
B
It's completely mind boggling and strange and really impossible to understand, like how it could happen. Because then what happened was they got into settlement negotiations with themselves and Trump actually joked about it. He said, I'm, I'm negotiating with myself over the settlement because the judge in this said, there is no adversarial relationship. You don't have a case, you don't have a controversy. So there's nothing for me to adjudicate here, or I think there's nothing here. So you're going to have to brief me on why this is. And they said, okay, we're going to withdraw the lawsuit and then we're just going to negotiate a settlement with ourselves. And so Todd Blanch, the acting Attorney general, who was the former personal lawyer for Trump, was negotiating with Trump over, you know, I thought it was like, well, how blank would the check that we can, you know, write to you be where you can we make it more blank so you can fill in whatever number you can. He sued for $10 billion, which was a ludicrous number, but why not 20 or $100 billion? Yeah, but then there was this twist where they decided not to just hand Trump money. They had this new strategy, which is to create this fund.
A
So one possibility is they would have just like wired it to his Chase account. Tell me before you get to the analysis about the fund, what is the fund?
B
Okay, so what happened was they reached a settlement and the settlement is the Anti Weaponization fund. And I, the thing is, I know that this is bad, but it's, it's so comical.
A
It's funny, it's great content.
B
Yeah, I like, this is the kind of thing where people have said, you know, Trump's funny. You know, he's been amusing. I s are no longer amused. You know, it's just like the idea
A
that somehow this is ending in kind of reparations for Jan Sixers is just literally.
B
Yeah, literally reparations.
A
But he calls it the anti Weaponization. What? What? What is it?
B
You know what I thought that was funny was that it first was reported as a $1.7 billion fund. I was like, that's such a weird random number. One, why. Why not. Two, why not have a round number? And then it changed to 1.8. I was like, well, why did they go from 1.7 to 1.8? And the reason was that it was never 1.7 or 1.8. It was 1.776. 1776. Because they're just trolling us.
A
Yes.
B
And so I thought, like, I was just so annoyed by the trolling. You know, you can imagine that they're going to do all the Instagram posts celebrating their anti Weaponization fund checks. Yeah.
A
Yeah.
B
So the fund is purportedly going to go to anyone who is able to show that they were victims of the Biden administration's, you know, quote, unquote, weaponization.
A
Yeah.
B
Which really just means law enforcement, and they haven't really defined it. It's going to be a very secretive slush fund that they can dole out essentially at the President's whim.
A
And it's not clear that they will have to say who they've given the money to. Like, that is one of the things that there's question marks around.
B
Yeah, well, they might not be able to because you're not allowed to disclose who government money went to without the consent of the recipient. So there's going to be all sorts of questions about transparency and process here. So what happens is they built this 1.7. We're going to round up to $1.8 billion fund, and that's coming out of an existing amount, a pot that Congress allocated in the 1950s.
A
And what was the pot? One of the questions I just had is, like, the. Why, like, almost $2 billion. Obviously, like, the founding fathers were not, like, there should be a fund for the President to pay his friends and punish his enemies. Like, why was this money even there?
B
Yeah. Right. So what happened was the government occasionally gets sued and there's some wrongs, and then the government will pay out funds. And what Congress did was say, look, you know, we're not going to authorize this in each individual case. So we're going to give the Treasury. This is what happened in the 50s and 60s. We're going to give the Treasury a fund where if there's a serious legal process, where there's Real parties who are adversarial, overseen by a judge, where there's a presentation of evidence and a gathering of facts and some determination of real victims, then they'll be able to pay this fund out. And Congress doesn't have to authorize it in each individual case.
A
So there's an existing pot of money for when the government makes mistakes?
B
Yes.
A
It's just not supposed to go in this direction from this person. It's not supposed to be Trump's piggy bank.
B
Right. I mean, this is his innovation, and you kind of have to hand it to him because they're groundbreaking in their imagination and brazenness about how to use the levers of presidential power. And one of them is to locate this fund and understand its capacity and then transfer the money for this kind of purpose, which is a really corrupt purpose because it was never used to benefit political patrons or allies of the President. So it was not the slush fund for the personal use of the president for his funds. I mean, this is what the constitutional crisis is about. And this is a constitutional crisis. It is a usurpation of congressional authority over the power of the purse. And this is a utter abuse of power from the executive in a way that's almost worse than having him personally profit from this. This is what the crisis is. So it's in the dark, going to be subverted for American taxpayer dollars. You know, my dollars and your dollars are going to go into this fund, and then without any process of transparency or any ex ante criteria, you know, so somebody, anybody can petition the government. And then this is actually a secret board. We don't know who's going to be appointed to it. Five people appointed by Todd Blanche, the President's former personal attorney. Acting Attorney general is going to oversee these five people, but they serve at the pleasure of the President. So the President could fire them at any time. And as we've seen, he will fire people at any time. And then they will decide in private who gets this money.
A
It's crazy.
B
It's crazy. It's crazy. It's crazy that it's happening, but I do feel like this may be breaking through to some extent because it's so brazen.
A
One piece of evidence for Jesse's theory that this story is so unusually brazen that it even breaks through to the people who don't spend much of their time being outraged is that it broke through to me. My nervous system rejects outrage. I only really like stories that invite lots of feelings, not knowing complexity. President uses taxpayer money to make Personal slush fund is not a normal search engine story. But it's where we are this week because it genuinely did grab my attention, genuinely force me to feel things that I try not to feel, because I think if you feel them too often, they do something bad to your brain. I'm sure our next episode will be more normal, but this week I feel like I've huffed a can of msnbc. I solemnly apologize. Jesse is different from me. He routinely reports on stories that outrage him. He tries to bring outrageous to light on behalf of the public interest. But even for him, this is a story where, when he imagines its next act, his imagination offers some particularly bleak outcomes. To Jesse, the possibility that Trump just pays his friends about $2 billion of taxpayer money so it'll somehow end up back in his pocket would actually be not as bad as another outcome. The worst one he can imagine is that Trump has about $2 billion now and he fulfills his promise to pay the January 6th insurrectionists. And now he has something that looks a little bit like a paramilitary group. People who do violence at his command, who he then gets out of jail and pays. What does he do with them next? Is America flirting with something darker here than we flirted with before? I don't know what to make of that. You can make the mistake of driving yourself crazy imagining terrible futures. You can make the mistake of summoning terrible futures by telling yourself they'll never arrive. But the facts that we know are that the president has nearly $2 billion at his discretion, and he won't have to tell us who he pays it to. And, Jesse points out, this fund also contains language that's meant to inoculate Trump, his family, and his family organization from IRS audits, past audits, and possibly future audits, depending on how a court interprets the language here. All of this, of course, will be challenged in court to some degree. What happens next has to do with judges and politicians in the next election, but it also has a lot to do with us, with what we decide is worth our sustained attention. We're going to take a short break. When we return, we will go back in a way to the beginning. This whole story started weirdly, because a lot of very wealthy people wanted to avoid paying their taxes. And some journalists thought if they could get more people talking about this, that might be a good thing. People are talking about it. Has it been a good thing? Honestly, the answer will surprise you. It'll surprise you after these ads. This episode of Search Engine is brought to you in part by DB Journey. If you've been keeping an eye on the travel space, you've likely heard about the disruptive new brand coming out of Scandinavia that is redefining how we pack. DB Journey has been a staple for Scandinavian travelers for years. They are introducing the Ramverk Alu. This may be the world's first infinitely repairable luggage made entirely of custom made components. This isn't just about aesthetics. The aluminum construction utilizes a custom center frame and edge frame to provide industry leading durability for those who value a seamless travel experience. The ultra silent Japanese Hinamoto 360 wheel and the robust one piece telescopic trolley handle offer a level of precision that feels entirely bespoke. Between the signature TSAA proof locks and the rivetless construction that allows for interchangeable straps and handles, this is luggage engineered to last a lifetime. DB's Ramverk luggage is rarely discounted, but we now have an exclusive 15% discount code sitewide. Go to dbjourney.com and use the code search 15.
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Not available in all states. Welcome back to the show. So here's something I think about. Sometimes when there's an unsolved problem in American life. Whether it's immigration policy, whether it's taxes, sometimes the problem benefits from more attention accruing to it. But just as often, the heat of public attention can actually make things worse. The politicians begin to politic. Sober voices leave the field. I'm describing a thing that I don't think I need to describe because you live here too. Jesse cared about tax policy before it was, and I use this term very loosely, cool. Or as nerds would put it, before it was more highly salient. One feature of that newfound salience is Trump's fund. Another, though, is lots more conversation and policy ideas aimed at changing American tax policy. Jesse is famously not an optimist. Not an optimist, just a grouch who works all day trying to make an impossible world better. But I wanted to know what Jesse sees when he looks out now at the current landscape of American tax policy.
B
We're in a race between the oligarchs and democracy. So people are very angry about billionaires on the left and the right and feel like American society is fundamentally not working. And they blame the wealthy for absorbing too many of the resources and profiting unfairly and having all of these benefits accrue to them, and they're still struggling. And I sort of think that critique is fundamentally true in American life. And then there's a lot of ferment about taxing the wealthy now, which I think we contributed to that conversation. You know, Bernie Sanders and Elizabeth Warren ran on wealth taxes. Occupy Wall street brought this kind of to the fore with the kind of 99% and 1% language. So I think it's been building since the financial crisis, really, which was a collapse in the American order up till then. And we've been struggling to kind of replace it. And people have thought that banks, bankers, Wall street, the wealthy have been screwing us for a long time. So it's been building and building. And now there's a lot of good policy thinking about how to properly tax the wealthy. But the wealthy have gotten so much richer in the time that this has been building, and they've consolidated so much more power and are spending so much more on our elections that, you know, the. I would say the forces of democracy continue to be losing this, but they haven't lost.
A
But do you feel like. I've just been surprised. I feel conflicted about how to think about what's happening right now in America, where I feel like when I look at the conversations around taxes, I see attempts to tax the wealthy more competently, which they seem to evade very easily. And I see a general feeling where the reaction almost seems to be like, well, just like, rather than the wealthy should pay more, billionaires should pay more. I feel like where I'm actually seeing energy is, well, maybe nobody should pay taxes. Yeah. And like, I'm not saying, like, I enjoy tax day, but it's a place where I feel like, civic. And I've been. I feel like what I see, like, no tax on tips or whatever. It feels like it's just like we're just sort of starting to arrange carve out after carve out after carve out. Rather like the feeling is like almost a kind of like, nihilism. That's what I feel like. I pick up when I read what I say.
B
Yeah, I completely agree with you. And I wish that I think you are in a category of about 7 people in America who are sort of happy about paying taxes in the way that you just Described, which is admirable and correct, which is that it is a civic duty, it's a responsibility, and should be a point of pride. If we could get back to that, we would be in a much better place. And I think that part of the idea of taxing the wealthy is not to strip them of their wealth, which the taxes wouldn't do, but to require them to contribute to our shared prosperity. And the project of American shared prosperity has completely collapsed and been destroyed over the last sort of 50 years, I think. But, yes, I think you're right that because of people's cynicism and because of this collapse in the faith in any institution in American society to make things better, including the government, even Democrats have said, well, we want to start exempting other people, whole classes of people from paying taxes. And so you see from Senator Cory Booker and Chris Van Hollen, efforts to exempt. Exempt greater numbers of people who make less money from paying federal income tax. And that's a really a terrible move, in my view. That's totally wrong. We should all pay taxes, and we should all pay taxes in proportion to our income, and we should define our income correctly. And then we can actually tax the wealthy and draw more from the wealthy as a higher percentage of. Than from the poor. But, yes, the direction of sort of starting to piecemeal exempt everyone else from Texas will destroy us. I mean, a functioning society has to collect taxes well and equitably. And before you have a democracy, you have to have a functioning society. And the functioning society is based on equitable tax collection. And if you don't have that, you collapse. That's the lesson of history.
A
Yeah. I think what is strange about this era is, like, for the people who support Trump, but also for the people who resist him or dislike him or just don't vote for him. The way where everyone seems to be continuously mirroring each other is to say, like, the system's rigged, the institutions are crumbling. Let's make it worse. And that's like, I don't know what you do with that. I just notice it, and it worries me.
B
Well, look at Mamdani. Mamdani is running on the idea of government, and he's saying, government is good, and we have to make government good. We can't deliver if we don't deliver on our promises. We erode people's confidence. And so it's a principle about the project of creating a society and having a governing body over that, and having the governing body actually work for people.
A
Yeah. And you see him kind of trying to build. Like, if right now, so much of politics is, what can you make legible on social media, on the Internet? The thing that I see him trying to make legible is functioning government. Like, the thing I see him doing pretty often is to be like, here are city workers fixing potholes. Here is what happens when it snows. Like, even. Like, the police department in New York City the other day had, like, confiscated a bunch of illegal, dangerous street bikes, and they were running them over with a bulldozer. But I was like, okay, they're trying to show in some way, the message seems to be. I mean, this is not how they would put it, but it's a message you can read in it. And I can read in it like, your tax dollars are going to something. Keep paying your taxes, basically.
B
Yeah. No, no, no. But I think he's saying, you know, we can't. We can't make all these promises and then not only not deliver on them, but not show people. We need to show people what we do for a living, you know, where the money's going to, how it's working. I think it's a purposeful strategy. I think it's well thought out. And Democrats have been kind of conceding this idea that government was ineffective, inefficient, and sort of the wrong idea since Clinton really. You know, Clinton sort of said the era of big government is over. I think they've been running away from government. And, you know, one idea would be to embrace the idea of government and try to make it work for people.
A
Jesse Eisinger. He's an assistant managing editor at ProPublica and a staunch Republican. If you liked what you heard here, I have fantastic news for you. Jesse's outfit, ProPublica, just launched a podcast called Paper Trail. It's ambitious work. They're doing real reported stories, the kind of thing you don't always get to hear on audio podcasts these days. They just launched, if you're curious. Just stick around after this break. You can hear a trailer of their new show. Sam.
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Everything you want for summer is at Nordstrom Rack stores now and up to 60% off. Stock up and save on the brands you love. Vince, Sam, Edelman Frame and free people. Join the nordiclub to unlock exclusive discounts. Shop new arrivals first and more. Plus, buy online and pick up at your favorite Rack store for free. Great brands, great prices. That's why you rack ready to soundtrack your summer with Red Bull Summer All Day Play. You choose a playlist that fits your summer vibe the best. Are you a festival fanatic, a deep end dj, a road dog, or a trail mixer? Just add a song to your chosen playlist and put your summer on track. Red Bull Summer All Day Play. Red Bull gives you wings. Visit RedBull.com BrightSummerAhead to learn more. See you this summer. Hi, I'm Jessica Lesnop and I'm a reporter at ProPublica and the host of a new podcast called Paper Trail. On this new show, we're going to show you that investigative journalism is powerful. And here's how I know that. Many years ago, I was working as a reporter at a tiny newspaper in Missouri and I got this crazy tip about a man in prison. He'd been convicted of armed robbery when he was in his 20s and sentenced. But then the government made a huge mistake. They never actually sent him to prison. They just forgot about him. By the time they realized their mistake, 13 years had passed and he'd become this pretty upstanding guy. Wife and kids. He didn't even like to swear. Even the victim of the robbery told me this guy shouldn't have to go to prison after all this time. But instead of dropping it, they arrested him in front of his family and locked him up. I was already a pretty cynical person at the time, and this story was not helping. But I published this story anyway and the case wound up getting a bunch of attention. A while later, he gets a new court hearing. I walk in, his wife is there, she's all dressed up. And I'm like, this is going to suck. This is just going to be some kind of pointless procedural thing where they're just going to confirm he's completely screwed. Instead, the judge gets up there and starts talking and he lays out the facts of the case and some of the details I thought had to have come from my story. And then he concludes that putting the guy in prison now serves no purpose. And he says to the guy, you can go home, like right now. He walks out, hand in hand with his wife. And I got into my car. I was like, I do not understand what just happened. I am not and everything happens for a reason kind of of person. I was not even particularly optimistic. And this was the closest thing to a spiritual experience that I have ever had. It felt like magic. Investigative journalism is an act of optimism and it's all we do at ProPublica. We're an independent, nonprofit investigative newsroom and we focus on corruption and abuse of power.
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We look under rocks for secrets.
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What's not being told on this show?
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We're going to bring you inside a new investigation. Every episode, we're going to call out things we see that are wrong, things that affect your life and my life. This could happen to anybody.
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The law seemed to be patently unfair. That's just a system that's not humane, it's not sustainable, and it's not right.
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Because when the public knows the truth.
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A BombShell report by ProPublica reveals just how little the wealthiest Americans have been paying in taxes.
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Those are just some of the lavish gifts that Justice Clarence Thomas has been given by wealthy benefactors.
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According to a new investigative report by Population Uncovered serious problems with some prescription medication produced in foreign countries.
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Not always, but more often than you'd think. Things change. The Supreme Court has adopted its first code of ethics. Intuit, which owns TurboTax, was ordered to pay $141 million to roughly 4.4 million people. Laws get passed, say representatives gave initial approval to the lot Life of the Mother act clarifying when doctors can perform abortions. Powerful leaders are held accountable.
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Breaking news here. Homeland Security Secretary Kristi Noem fired people
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walk out of prison and cynics like me turn into optimists. I'm jessica lesnop and I'll be your guide. This is paper trail.
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Search Engine is a presentation of Odyssey. It was created by me, PJ Vogt and Shruti Pinamani. Garrett Graham is our senior producer. Emily Malta Hara is our associate producer. Theme original composition and mixing by Armin Bazarian. Fact checking this week by Piper Dumont. Our executive producer is Leah Rhys Dennis. Thanks to the rest of the team at Odyssey. Rob Morandi, Craig Cox, Eric Donnelly, Colin Gaynor, Maura Curran, Josephina Francis, Kurt Courtney and Hilary Schuff. If you have a business and would like to advertise on our show, Please email us pjvote85mail.com Subject line Advertising. If you are a listener and do not want to hear ads on our show, sign up for Incognito Mode Search Engine show. You will also get bonus episodes. This week we had one about Taiwan. It's very fascinating. Thank you for listening. We'll see you in two weeks.
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Search Engine — Why Do We Have to Pay into the New Anti-Weaponization Fund?
Host: PJ Vogt | Guest: Jesse Eisinger (ProPublica)
Date: May 29, 2026
This episode dives into one of the most talked-about national news stories of the week: President Trump's newly announced Anti-Weaponization Fund. Host PJ Vogt is joined by investigative journalist Jesse Eisinger of ProPublica to unpack how a leak of Trump’s (and other billionaires’) tax returns years ago set off a chain reaction—culminating in the creation of a highly controversial federal fund. The episode traces the origins of this fund, explains how it operates, explores legal and ethical implications, and reflects on what it means for American democracy and tax policy.
(03:50–07:13)
“Jeff Bezos had literally paid zero in taxes for two years when he was a billionaire... They pay just trifling sums of taxes compared to their wealth growth.” — Jesse Eisinger (04:40)
(10:56–16:58)
“What he did was, he in his personal capacity sued the federal government, which he runs, for $10 billion for having allowed the leak of his tax returns.” — Jesse Eisinger (11:58)
“Trump actually joked about it. He said, ‘I'm negotiating with myself over the settlement.’” — Jesse Eisinger (16:10)
(16:58–19:47)
Instead of a payment directly to Trump, the settlement created the Anti-Weaponization Fund.
The initial reported amount ($1.7 or $1.8 billion) was later revealed to be precisely $1.776 billion—a reference to 1776, seen as a form of trolling from the administration.
“The reason was that it was never 1.7 or 1.8. It was 1.776. 1776. Because they're just trolling us.” — Jesse Eisinger (18:14)
The fund is designated to compensate anyone “able to show that they were victims of the Biden administration's, quote, unquote, weaponization”—a vague term that broadly means any legal or law enforcement actions the current administration doesn't like.
The fund operates as a secretive “slush fund” with little transparency, overseen by a secret board appointed by Trump’s acting attorney general, and recipients can remain anonymous.
(19:47–22:32)
“This is a constitutional crisis. It is a usurpation of congressional authority over the power of the purse. ...an utter abuse of power from the executive.” — Jesse Eisinger (21:04)
“You know, my dollars and your dollars are going to go into this fund, and then without any process of transparency... a secret board... They will decide in private who gets this money.” — Jesse Eisinger (21:30)
(22:32–27:46)
PJ reflects on how this story, though outrageous, has broken through his own news fatigue; he admits, “I feel like I've huffed a can of MSNBC.”
Jesse’s greatest worry is that the fund could become a reward system—potentially paying those who participated in the January 6th insurrection, raising the specter of a “paramilitary group” loyal to Trump.
“The possibility that Trump just pays his friends about $2 billion of taxpayer money... would actually be not as bad as another outcome. The worst one he can imagine is...he has something that looks a little bit like a paramilitary group.” — PJ Vogt (24:21)
Hidden in the fund’s legal language are provisions that may also insulate Trump, his family, and businesses from IRS scrutiny, now or in the future.
(27:46–36:36)
Public attention on tax avoidance has led to both positive and negative outcomes. There’s more focus on taxing the wealthy, but also a growing cynicism and push for broad exemptions—risking the erosion of the fundamental social contract around taxes.
Notable exchange:
“We're in a race between the oligarchs and democracy... The forces of democracy continue to be losing this, but they haven’t lost.” — Jesse Eisinger (29:02) “The feeling is like, maybe nobody should pay taxes...almost a kind of nihilism.” — PJ Vogt (31:13) “A functioning society has to collect taxes well and equitably...If you don't have that, you collapse. That's the lesson of history.” — Jesse Eisinger (33:44)
The conversation touches on local political efforts (like Mamdani in NYC) to restore faith in government by making civic outcomes, and the use of taxpayer dollars, visible to the public.
The discussion is direct, candid, and, at times, darkly humorous—mirroring the surreal absurdities and growing dangers discussed. Both PJ and Jesse reflect a sense of urgency, incredulity, and concern for the erosion of democratic norms, the manipulation of government power, and the public’s cynicism about taxes and the social contract.
This episode is a deeply reported, accessible explainer on how arcane legal and fiscal maneuvers—set in motion years ago—have reached a critical and unsettling climax, raising profound questions about the future of democracy, accountability, and civic life in America.