Conflict Of Interest Laws: Do They Bind The President?

do conflict of interest laws apply to the president

Conflict of interest laws do not apply to the president in the same way they do to other government employees. While the legislative and judicial branches of the US government are governed by well-established rules, there is less clarity about what a president can and cannot do. In fact, Donald Trump once asserted that the president can't have a conflict of interest. However, this does not mean that the president is exempt from all conflict of interest laws. For example, the emoluments clause of the US Constitution prohibits the president from accepting foreign gifts. Additionally, there have been attempts to introduce legislation specifically addressing financial conflicts of interest of the president, such as the Presidential Conflicts of Interest Act of 2017.

Characteristics Values
Conflict of interest laws Do not apply to the president and vice president
Conflict of interest provisions Generally looser for the president
Emoluments clause Prohibits the president from accepting foreign gifts
Presidential Conflicts of Interest Act of 2017 Bill introduced to address financial conflicts of interest of the president and vice president
Tax disclosure Norms suggest that presidential candidates and presidents should disclose their tax returns

lawshun

The Presidential Conflicts of Interest Act of 2017

The bill would require the President, Vice President, and their spouses to disclose their financial interests, including their tax returns for the previous three years. It would also require them to divest any conflicting assets through a qualified blind trust. The bill further proposes that presidential appointees must recuse themselves if any matter would substantially affect the President, and the President and Vice President would be prohibited from participating in federal contracts.

The legislation would also require both major party presidential nominees to publicly release their tax returns from the preceding three years. This aspect of the bill was adapted from Senator Ron Wyden's Presidential Tax Transparency Act.

Supporters of the bill argue that it is necessary to ensure that the actions of the White House are taken on behalf of the American people rather than for personal gain. However, Republicans view the bill as a political attempt by Democrats to undermine a Republican president. The bill has yet to receive a vote in the House Oversight and Government Reform, Judiciary, or Ways and Means Committees, or the Senate Homeland Security and Government Affairs Committee.

lawshun

Conflict of interest provisions for the president's family

Conflict-of-interest provisions for the president's family members have been a highly debated topic, especially during the 2016 and 2024 election cycles. While there are no explicit laws prohibiting conflicts of interest for the president's family, there are concerns about the perception of undue influence and the potential for damaging the reputation of the presidency and the United States.

The Presidential Conflicts of Interest Act of 2017, introduced by Senator Elizabeth Warren, aimed to address financial conflicts of interest of the president, vice president, and their spouses. The bill included provisions requiring the divestment of conflicting assets through a qualified blind trust and prohibiting participation in federal contracts. However, this bill did not explicitly mention the president's extended family members.

In the absence of clear legislation, the perception of conflicts involving extended family members can be just as damaging as actual conflicts. This perception can erode public trust and negatively impact the reputation of the presidency. To mitigate these risks, it is recommended that the president and their family members avoid any transactions or business dealings that could create even the appearance of a conflict of interest.

Additionally, while not legally required, it is advisable for the president's family members to disclose any potential conflicts and recuse themselves from voting or decision-making processes where a conflict may exist. This proactive approach helps maintain transparency and reduce the potential for ethical concerns.

Overall, while there may be no legal consequences for conflicts of interest involving the president's family, the potential for reputational damage and the erosion of public trust underscores the importance of proactive disclosure and ethical decision-making by the president and their family members.

lawshun

The Emoluments Clause

> "No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State."

The purpose of this clause is to prevent the country's leaders from being improperly influenced by gift-giving, which was a common practice among European rulers and diplomats at the time of its drafting. The clause covers any kind of profit, benefit, or advantage, not just gifts of money or objects. For example, it would prohibit a federal officeholder from receiving special treatment in business transactions with a foreign state or a corporation owned by a foreign government.

The Domestic Emoluments Clause (Article II, Section 1, Paragraph 7) complements the Foreign Emoluments Clause by prohibiting the president from receiving any "Emolument" from the federal government or states beyond their official compensation as chief executive.

The Presidential Conflicts of Interest Act of 2017 was a bill introduced to address financial conflicts of interest of the president and vice president. It would have required the divestment of conflicting assets, the recusal of appointees in relevant matters, and the disclosure of tax returns. However, the bill did not pass.

lawshun

Tax return disclosure

The Internal Revenue Code (IRC) states that federal tax returns and return information shall be confidential. The IRC safeguard extends to all information related to the returns, such as tax liability, tax payments, and efforts to collect unpaid taxes. The IRS is barred from using the information for reasons other than tax administration.

However, there are some situations where the IRS or others with access to tax returns must turn them over to other parties. These include:

  • Court subpoenas
  • Valid requests from legislative oversight committees
  • Court orders to share tax information with law enforcement agencies for the investigation and prosecution of non-tax crimes
  • Official tax investigations
  • Social Security and Medicare

In addition, taxpayers are free to disclose anything about their own tax returns, but the IRS can't comment on anything voluntarily disclosed. Taxpayers may also request that the IRS disclose tax records to a third party.

Disclosure to the President

The President, Vice President, and any major party nominee to be President or Vice President are required to disclose their three most recent tax returns. However, the President and Vice President are exempt from the federal conflict of interest statute.

lawshun

Self-policing

In the US, conflict of interest rules apply differently to the president than to other government employees. While conflict of interest laws can be a serious matter for a congressman with a small business, there is no equivalent for a president with a multibillion-dollar empire.

The president and vice president are exempt from the federal conflict of interest statute. However, the country's founders drew a bright line at accepting foreign gifts, which is captured in the emoluments clause of the Constitution. This could pose a problem for a president with international business operations or even domestic operations that could trip them up, such as through their dealings with foreign officials.

The presence of a conflict of interest is independent of the occurrence of inappropriateness. A conflict of interest exists if the circumstances are reasonably believed, based on past experience and objective evidence, to create a risk that a decision may be unduly influenced by other, secondary interests.

In the case of former President Donald Trump, who built an international property management, real estate, and branding business around his name, there appeared to be no consequence. Trump asserted that he was not bound by conflict of interest laws, stating, "The law is totally on my side, meaning the president can't have a conflict of interest." However, ethics lawyers and good-government groups reviewed laws, past cases, and best practices to address the serious questions that remained about his business dealings.

While self-policing has been common, it is important to note that conflict of interest rules in the public sphere mainly focus on financial relationships since they are relatively more objective, fungible, and quantifiable.

Frequently asked questions

Conflict of interest laws do not apply to the president in the same way they do to other government employees. While the president is exempt from the federal conflict of interest statute, there are some provisions in the Constitution, such as the emoluments clause, that prohibit the president from accepting foreign gifts.

The emoluments clause is a part of the Constitution that prohibits the president from accepting gifts or payments from foreign governments.

Yes, there have been attempts to pass legislation that would address the financial conflicts of interest of the president. For example, the Presidential Conflicts of Interest Act of 2017 was introduced by Senator Elizabeth Warren to require the president and vice president to divest of conflicting assets and disclose their tax returns. However, this bill did not pass.

The consequences for violating conflict of interest provisions are unclear. While some have argued that violating these provisions could constitute a high crime or misdemeanor, it is difficult to determine who would have the standing to call out the president for such violations.

Conflict of interest rules apply differently to other government employees, such as members of Congress, who are governed by well-established rules and stringent ethics codes enforced by congressional committees.

Written by
Reviewed by
Share this post
Print
Did this article help you?

Leave a comment