IRS Strikes Unprecedented Deal With ICE on Undocumented Immigrants

On Monday, the Internal Revenue Service agreed to start sharing tax data with Immigration and Customs Enforcement to help the Trump administration find and deport undocumented immigrants, according to The New York Times.

This is a serious 180 from previous protocol. U.S. law historically requires the IRS to keep taxpayer information like addresses and income under wraps, even from other departments of the federal government. Now Trump is classifying these deportations as criminal investigations to take advantage of a loophole that breaks from that IRS privacy practice.

“It’s unprecedented,” Center for Taxpayer Rights director and former IRS official Nina Olson told the Times. IRS chief counsel William Paul was fired as the deal was made and replaced with Andrew De Mello, a Trump appointee.

Undocumented immigrants paid $96.7 billion in federal, state, and local taxes in 2022 at a rate of $8,889 per person, paying into programs with benefits that they’re barred from receiving. This IRS and ICE deal will likely push undocumented immigrants to stop paying those taxes and pursue unreported employment to avoid getting their information leaked to ICE. These “under the table” jobs are unregulated, dangerous, and often exploitative.

The Trump administration is continuing its unconstitutional attack on attorneys it disagrees with, this time by detaining an American citizen.

Amir Makled, an attorney representing a pro-Palestinian student protester arrested at the University of Michigan last year, was detained at the Detroit Metro Airport Sunday upon returning from a trip to the Dominican Republic with his family. 

Federal agents held Makled for 90 minutes, questioning him about his clients. They also tried to get Makled to give up his phone, which he refused to do, but agents did look at his contact list, the Detroit Free Press reported.

Makled was ultimately released without incident, but his detention is an indication of Donald Trump’s growing assault on attorneys taking cases he is against. The president has already issued executive orders penalizing five of the country’s top law firms, as well as a memo to the Justice Department directing the agency to punish immigration attorneys supposedly perpetuating fraud in the system.  

“This current administration is doing something that no administration has done—they are attacking attorneys,” Makled told the Press. “This is a different type of threat to the rule of law that I see. They are now challenging the judiciary, or lawyers, they’re putting pressure (on them) to dissuade attorneys from taking on issues that are against the government’s issues. We have an obligation as lawyers to stand up to this stuff.”

Trump’s punishment of law firms, which is a move out of the autocrat’s handbook, comes amid a larger crackdown on free speech and any sign—personal or institutional—of Palestinian solidarity. In recent weeks, several international students involved in pro-Palestine protests have been unlawfully kidnapped and detained by Immigration and Customs Enforcement, and nearly 300 international students have had their visas revoked for similar reasons.

Makled’s client, Samantha Lewis, is an American citizen and one of seven pro-Palestine protesters arrested at the University of Michigan last spring. The 38-year-old attorney is unsure whether this case is what triggered his detention Sunday, but he told the Press he will not stay silent despite the White House’s intimidation strategy.

“I have to be a person who can speak out when your rights are violated. We have to be the balancing act. We’re a nation of laws. You gotta have lawyers,” he said.

Trump’s Justice Department  is going to pull back on prosecuting cryptocurrency fraud, according to a memo from Deputy Attorney General Todd Blanche.

The memo, sent to the Justice Department Monday, states that the DOJ won’t be pursuing cases that Blanche said are better suited for financial regulators, instead focusing on crimes committed with cryptocurrency, such as selling illegal drugs, The Washington Post reports.  

Blanche also plans to dismantle the National Cryptocurrency Enforcement Team, which was set up in 2022 to “address the challenge posed by the criminal misuse of cryptocurrencies and digital assets.” The move throttles an enforcement team that has successfully prosecuted market manipulation schemes and attempts to hide the owners of crypto assets. The unit was already hampered by the fact that in the Trump administration’s first days, its leader was transferred to a new sanctuary cities division in the DOJ. 

Now other attorneys previously focused on cryptocurrency will instead focus on immigration crimes and procurement fraud, the memo states, although federal prosecutors will still be directed to bring cases against people who defraud investors.

The shift away from prosecuting crypto crimes is not surprising for the Trump administration. The president has long cozied up to cryptocurrency investors, and even engaged in some shady crypto transactions of his own, such as his deal with Justin Sun, a Chinese national accused of fraud. Trump and his wife, Melania, have also released their own memecoins.

The president’s announcement last month of a new national “crypto strategic reserve” smacks of a blatant ploy to make some of his cronies richer, and the Trump family has reportedly held talks about taking a financial stake into Binance, a cryptocurrency firm that pleaded guilty in 2023 to money laundering. It seems that Trump and his cronies are looking to profit from cryptocurrency and want pesky regulations and law enforcement out of the way.

Elon Musk called Donald Trump’s top trade adviser Peter Navarro “dumber than a sack of bricks” Tuesday, once again betraying the administration’s deep rift over the president’s disastrous tariffs. 

Navarro found himself in hot water with Musk after he called the billionaire bureaucrat a “car assembler” during an appearance on CNBC Monday.  

“When it comes to tariffs and trade, we all understand in the White House—and the American people understand—that Elon’s a car manufacturer. But he’s not a car manufacturer. He’s a car assembler, in many cases,” Navarro said. 

“If you go to his Texas plant, a good part of the engines that he gets, which in the EV case is the batteries, come from Japan and come from China, the electronics come from Taiwan,” Navarro said.

Navarro explained that Musk’s view on tariffs differed from the White House’s because he wanted to continue to use “cheap foreign parts.”

Musk was furious. “Navarro is truly a moron. What he says here is demonstrably false,” he wrote in a post on X Tuesday. 

In a separate post, Musk claimed that “Tesla has the most American-made cars.”

“Navarro is dumber than a sack of bricks,” he added. 

Musk included a link to an article from 2023 citing a Cars.com study that found Tesla produced the “most American” cars. One extremely important caveat: The study included Canada as part of the U.S., which is, of course, subject to Trump’s “permanent” 25 percent tariffs on all imported vehicles and auto parts.

The more recent version of that same study, from 2024, found that the Tesla Model Y still topped the list, though it noted that the company no longer held “a vice grip at the top of the order thanks in part to changes in this year’s workforce calculations.” Still, the study included Canadian parts content as U.S. parts. 

And crucially, Navarro’s not wrong that Musk’s electric vehicle company relies on foreign parts. Tesla’s batteries are manufactured at its Giga Shanghai factory in China in collaboration with Chinese battery manufacturer Contemporary Amperex Technology Co. Even if Tesla wanted to produce its batteries domestically, it would need to source materials such as nickel and lithium from other countries.

Over the weekend, the billionaire attacked Navarro’s defense of Trump’s tariffs on X, and posted a video of economist Milton Friedman that explains the global nature of supply chains, which was interpreted as a criticism of Trump’s sweeping “reciprocal tariffs” on nearly every country. 

Navarro replied by saying Musk “doesn’t understand” trade.

“The thing that’s, I think, important about Elon to understand, he sells cars. That’s what he does,” he said during an interview on Fox Business Monday. “He’s simply protecting his own interests, as any businessperson would do.”

“He’s got X, he’s got a big microphone; we don’t mind him saying whatever he wants,” Navarro added—though he may come to regret that sentiment.

Senator Mark Warner became exasperated Tuesday with Trump Trade Representative Jamieson Greer as he was unable to give a real answer as to why the president hit Australia—a key ally, with whom the U.S. has a trade surplus—with 10 percent tariffs on all imports.

“Australia is one of our strongest allies.… We have a free trade agreement with Australia. We don’t have tariffs,” Warner said. “We have a trade surplus with Australia.… With a trade surplus, with this strong relationship, Australia got hit with a 10 percent tariff as well?”

“Senator, Australia has the lowest rate available under the new program; they banned—”

“Ambassador, excuse me,” Warner interrupted. “There is a trade surplus. We already have a free trade agreement … so getting the least bad—why did they get whacked in the first place?”

“We’re addressing the $1.2 trillion deficit, the largest in human history, that President Biden left us with. We should be running up the score on Australia; they ban our beef, and they ban our pork—”

“Ambassador Greer, answer the question on Australia. We have a trade surplus with Australia; we have a free trade agreement. They’re an incredibly important national security partner. Why were they whacked with a tariff?”

“Senator, despite the agreement, they ban our beef, they ban our pork, they’re getting ready to impost measure—”

“But with your Greek letter formula, the fact that we have a trade surplus—”

“We have a global tariff on everyone,” Greer replied, continuing to evade the question. “We’re trying to address the $1.2 trillion deficit that Biden left us with, sir.”

“I think that answer.… Sir, you’re a much smarter person than that answer. The idea that we are gonna whack friend and foe alike, in particular friends … is both, I think, insulting to the Australians and it undermines our national security, and frankly makes us not a good partner going forward. The lack of trust from friends and allies based upon this ridiculous policy that goes into full effect at midnight tonight is extraordinary.

“A good day in hospice,” Warner continued. “I’m afraid if we keep these tariffs in effect, we’re looking like an economy that will be in hospice.”

The Supreme Court blocked an order Tuesday requiring the government to reinstate roughly 16,000 probationary federal employees ousted as part of the Department of Government Efficiency’s massive government layoffs across six different agencies.

In a brief two-page order, the court found that the nine nonprofit organizations that had brought the case lacked standing to do so. The ruling is a temporary win for the Trump administration’s efforts to gut the federal workforce, and for DOGE, which recommended the sweeping layoffs.

Justices Sonia Sotomayor and Ketanji Brown Jackson would have denied the application, according to the order.

Last month, U.S. District Judge William Alsup in California ordered officials at the Departments of Veterans Affairs, Defense, Energy, Interior, Agriculture, and Treasury to “immediately” reinstate all fired probationary employees.

Alsup stated that the mid-February mass terminations were the result of an “unlawful” directive from the Office of Personnel Management, and torched the White House’s effort to claim that the decisions were based on supposed performance failures as “a gimmick.”

“It is sad, a sad day, when our government would fire some good employee and say it was based on performance when they know good and well that’s a lie,” Alsup said in a hearing ahead of his ruling.

Despite the high court’s ruling, the fight to reinstate the workers isn’t over yet.

Another judge, U.S. District Judge James Bredar in Maryland, issued a similar order to Alsup’s applying to workers fired from 12 departments: Agriculture, Commerce, Education, Energy, Health and Human Services, Homeland Security, Housing and Urban Development, Interior, Labor, Transportation, Treasury, and Veterans Affairs.

Bredar’s ruling was on a case brought by a group of states with Democratic attorneys general, and wouldn’t be subject to the same standing issue as the case decided Tuesday.

This is the third time in two days that the Supreme Court has ruled in favor of the Trump administration’s agenda. The court temporarily blocked an order Monday night requiring the government to return a man wrongly deported to El Salvador to the U.S. by midnight. In a controversial decision, the court also blocked an injunction stopping Trump’s deportations under the Alien Enemies Act.

This story has been updated.

The Trump administration’s calculations justifying the most consequential tariff scheme of the last century are all wrong.

In an op-ed for The New York Times published Monday, economist Brent Neiman, whose research was used to justify the White House’s implementation of reciprocal tariffs, wrote that the White House fundamentally misunderstood his work.

“My first question, when the White House unveiled its tariff regime, was: How on earth did it calculate such huge rates?” Neiman wrote in the op-ed. “The next day it got personal.”

Shortly after the Trump administration announced its plan to implement tariffs of 10 percent or more on 90 countries—which it claims will eliminate the trade deficit but has only spurred global economic chaos—the Office of the United States Trade Representative published its methodology for the tariff calculations, citing a paper by Neiman and four other economists.

“But it got it wrong. Very wrong. I disagree fundamentally with the government’s trade policy and approach,” Neiman wrote. “But even taking it at face value, our findings suggest the calculated tariffs should be dramatically smaller—perhaps one-fourth as large.”

So if the White House had done the math right, and wanted its absurd trade plan to actually work, 20 percent tariffs should have been … 5 percent.

That wasn’t the only mistake, Neiman pointed out. The Trade Office claimed its reciprocal tariff calculations would eliminate trade deficits with each American trading partner. Neiman concluded that is not a “reasonable goal.”

“Trade imbalances between two countries can emerge for many reasons that have nothing to do with protectionism.… There are some reasonable arguments in favor of reducing the overall trade deficit, such as to reduce risks from our debt. But these arguments don’t apply country by country,” Neiman wrote, further exposing the White House’s lack of reasoning.

Even if all trade deficits are eliminated (which Neiman points out is basically impossible), reciprocal tariffs still won’t work.

“The administration’s tariff formula assumes that a tariff placed on one country won’t affect imports from any others and ignores any implications for exports,” Neiman said. “These assumptions may work for an action against one small trade partner, but not for the broad salvo announced last week.”

Neiman went on to decimate pretty much every justification the Trump administration has provided for tariff implementation, including its selective picking and choosing of his research results to support its claims.

“As a result of these and other methodological choices, Wednesday’s reciprocal tariffs will bring average tariff rates to their highest level in over 100 years. I would strongly prefer that the policy and methodology be scrapped entirely. But barring that, the administration should divide its results by four.” Neiman concluded, a grim reminder of the economic chaos yet to come.

The Trump administration is thinking about bombing Mexico.

Former and current U.S. military officials who spoke with NBC News said that communication between the White House, the Defense Department, and intelligence officials have included discussion of drone strikes on cartels and their networks in Mexico. No final decision has been made, but the report is still alarming.

The CIA and U.S. military have been conducting more surveillance flights over Mexico in the wake of President Trump last month designating drug cartels in the country as foreign terrorist organizations. While the flights have been approved by Mexican President Claudia Sheinbaum, the unilateral hostilities that the U.S, seems to be preparing for are not. This is set to make an already shaky relationship between the two allies even more unstable.

“We’re taking nothing off the table. Nothing,” Defense Secretary Pete Hegseth said in February when asked about military strikes in Mexico.

“There is no doubt if there were unilateral action inside Mexico, this would put the bilateral relationship into a nosedive,” former Mexican ambassador to the United States Arturo Sarukhán told NBC News. “It would be put in a tailspin, as it would represent a violation of international law and an act of war.”

Sheinbaum herself came out in staunch opposition to this very kind of activity from Trump back in February when the administration released the cartel terrorism designation.

“The people of Mexico, under no circumstances will accept interventions, interference or any other act from abroad that is harmful to the integrity, independence and sovereignty of the nation,” she said. “What we want to make clear with this designation is that we do not negotiate sovereignty, this can’t be an opportunity by the United States to invade our sovereignty…. They can call [cartels] whatever they decide, but with Mexico it is collaboration and coordination, never subordination, no interference and even less invasion.”

Donald Trump’s quest to slash the federal government appears to end with the Pentagon.

The president announced Monday that he wants the Department of Defense to have a $1 trillion budget, its highest ever, saying that “we have great things happening with our military.

“We also essentially approved a budget which is in the facility—you’ll like to hear this—of a trillion dollars, $1 trillion, and nobody’s seen anything like it. We have to build our military and we’re very cost conscious. But the military is something that we have to build, and we have to be strong, because you got a lot of bad forces out there now,” Trump said.

With the help of fellow fascism enthusiast Elon Musk, Trump has gutted key government agencies, firing several thousand federal workers and attempting to eliminate the U.S. Agency for International Development, the Consumer Financial Protection Bureau, and the Department of Education.

Regarding the Pentagon, Secretary of Defense Pete Hegseth had originally told DOD and military leaders in February to plan to cut 8 percent of the defense budget for each of the next five years. It seems that idea was doomed early on, especially considering Musk’s SpaceX contracts are being spared.

Musk will be making a killing from upcoming defense contracts to work on new rocket launchpads and rocket-booster landing zones, as well as Trump’s fantastical “Golden Dome” missile defense system. That idea will cost a whopping $2.5 trillion and isn’t necessary by any means. It looks like Trump will continue to keep the DOD bloated even though it has never passed an audit.

Supreme Court Justice Ketanji Brown Jackson slammed the “inequitable” and “inappropriate” way the court ruled to allow Donald Trump to proceed with his deportations under the Alien Enemies Act of 1798.

In a scathing dissent, Jackson voiced her disapproval of the court’s Monday decision to strike down U.S. District Court Judge James Boasberg’s injunction pausing deportations under the AEA, which was used last month to expedite the deportation of more than 100 alleged gang members to a prison in El Salvador notorious for human rights abuses.

“The President of the United States has invoked a centuries-old wartime statute to whisk people away to a notoriously brutal, foreign-run prison,” Jackson wrote. “For lovers of liberty, this should be quite concerning.”

The court’s newest justice also took issue with how her colleagues had ruled on the issue, as part of the bench’s emergency, or shadow, docket, which sees immediate action on issues ranging from scheduling proceedings to requests to halt lower court rulings—like the government’s request to halt Boasberg’s injunction.

“I lament that the Court appears to have embarked on a new era of procedural variability, and that it has done so in such a casual, inequitable, and, in my view, inappropriate manner,” she wrote.

“At least when the Court went off base in the past, it left a record so posterity could see how it went wrong,” she wrote. Jackson then cited Korematsu v. United States, in which the Supreme Court had ruled that the government was right to order the incarceration of Japanese American citizens during World War II. President Franklin Roosevelt had used the Alien Enemies Act to justify the brutality of Japanese internment.

The Supreme Court condemned its ruling in Korematsu in 2018, calling it “morally repugnant” and “gravely wrong” but at the same time rubber-stamped Trump’s travel ban targeting six Muslim-majority countries.

Jackson argued that the court hadn’t learned anything.

“With more and more of our most significant rulings taking place in the shadows of our emergency docket, today’s court leaves less and less of a trace. But make no mistake: We are just as wrong now as we have been in the past, with similarly devastating consequences. It just seems we are now less willing to face it,” she wrote.

In recent years, justices have begun to issue far more significant rulings through the shadow docket, according to the Brennan Center for Justice. Unlike the 60 or 70 merit docket cases that the justices decide each term, shadow docket cases do not receive extensive briefings or hearings, and their decisions are accompanied by scant explanations.

“Surely, the question whether such Government action is consistent with our Constitution and laws warrants considerable thought and attention from the Judiciary,” Jackson wrote.

“But this Court now sees fit to intervene,” she said, “hastily dashing off a four-paragraph per curiam opinion discarding the District Court’s order based solely on a new legal pronouncement that, one might have thought, would require significant deliberation.”