Trump to appeal to Supreme Court again after losing ruling on financial records

A federal appeals court on Wednesday rejected Donald Trump's effort to block Manhattan's district attorney from obtaining eight years of his tax returns for a criminal probe into the U.S. president and his businesses.

In a 3-0 decision, the 2nd U.S. Circuit Court of Appeals in Manhattan rejected Trump's accusations that a grand jury subpoena from Manhattan District Attorney Cyrus Vance was overly broad or issued in bad faith to harass him.

"The president has a 'difficult' burden and an 'unenviable' task: to make plausible allegations that could persuade the court that the subpoena that has been served on him could not possibly serve any investigative purpose that the grand jury could legitimately be pursuing," it wrote. "His complaint fails to do so."

The decision will lead a renewed clash between Trump and Vance at the U.S. Supreme Court.

That top court in July rejected 7-2 the Republican president's argument he was immune from criminal probes while in the White House.

But it said he could raise other objections to the subpoena to his longtime accounting firm, Mazars USA, for his corporate and personal tax returns from 2011 to 2018.

Jay Sekulow, a lawyer for Trump, said the president will appeal to the Supreme Court. Both sides agreed Vance would not enforce the subpoena during an appeal, according to court papers.

A spokesperson for Vance did not immediately respond to a request for comment.

The unsigned decision upheld an Aug. 20 ruling by U.S. District Judge Victor Marrero in Manhattan.

It followed a Sept. 28 report in the New York Times that Trump had paid $750 US in federal income taxes in both 2016 and 2017 and no income taxes in 10 of the prior 15 years, reflecting "chronic" losses he used to avoid paying taxes.

Trump has rejected findings from the Times report, tweeting that he had paid many millions of dollars in taxes but was entitled to depreciation and tax credits.

He has long resisted making his tax returns public, unlike his six immediate predecessors occupying the White House.

Hush money matter not yet resolved

Vance's probe began more than two years ago and had focused on hush money payments that the president's former lawyer and fixer Michael Cohen paid before the 2016 election to two women, Stormy Daniels and Karen McDougal, who said they had sexual encounters with the married Trump. The president has denied the affairs.

The district attorney has suggested in recent court filings that his probe is now broader and could focus on bank, tax and insurance fraud, as well as falsification of business records.

Trump argued that the probe was still focused on the Cohen payments, making the subpoena an improper "fishing expedition" targeting his business interests around the world, and said Vance improperly copied a similar congressional subpoena.

But the appeals court called it "implausible" speculation to suggest the probe was limited to the Cohen payments.

The court said grand juries "necessarily paint with a broad brush," especially in complex financial investigations, and do not know at the outset what their needs are.

It also found "no logic" to suggest the documents Vance wanted were irrelevant to legitimate law enforcement purposes, just because a congressional committee wanted the same documents for its own investigation.

The court also found no specific allegations that partisanship motivated Vance, a Democrat, to seek Trump's tax returns.

All three judges on the appeals court panel were appointed by Democratic presidents. Five of the eight current Supreme Court justices were appointed by Republican presidents.

Even if Vance gets Trump's tax returns, grand jury secrecy rules make it unlikely he will reveal their contents unless criminal charges were brought. If that happened, it would likely occur after the Nov. 3 election.