Expert: Clarence Thomas could face 'criminal prosecution' by not paying taxes on gifts
A tax expert recently said Supreme Court of the United States (SCOTUS) associate justice Clarence Thomas could face significant legal consequences by not paying taxes on gifts from billionaire benefactors.
Earlier this week, the New York Times reported that Thomas, who in 2000 was carrying six figures worth of personal debt, frequently complained about his salary as a member of SCOTUS. At the time, Thomas was paid over $173,000 annually (salaries for SCOTUS justices are now in excess of $285,000 per year). Thomas had openly threatened to resign from the Court and take more lucrative work in the private sector, suggesting that if he didn't receive a boost in pay, that "one or more justices will leave soon."
Conservative lawyer George Conway told ProPublica this fall that the Federalist Society's Leonard Leo — whose organization has multiple alumni sitting on SCOTUS — came up with a plan to keep Thomas "happy" by arranging lavish gifts for the far-right justice in exchange for him staying in his position and helping conservatives secure legal victories. In response to this, investigative journalist David Cay Johnston, who is an expert in tax law, said that Thomas would owe significant taxes on these gifts and could be criminally culpable if he didn't pay.
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"What Clarence Thomas has done would result in not only any judges in America being removed from the bench, but there is a good chance it would result in criminal prosecution for income tax fraud and for false filings in his mandatory financial ethics disclosure statements," Johnston told The Lever.
Following Thomas' threats to resign from SCOTUS, he has been treated to numerous luxurious excursions on the dime of wealthy benefactors like billionaires like real estate investor Harlan Crow, oil baron Paul Novelly, Berkshire Hathaway executive David Sokol and Blockbuster Video owner Wayne Huizenga, among others. The Lever reports that gifts to Thomas include VIP sporting tickets, private jet flights, yacht cruises, helicopter rides and a standing invitation to an exclusive golf resort.
In 1999, businessman Anthony Welters loaned Thomas more than a quarter of a million dollars to purchase a luxury RV — the bulk of which was never repaid and was eventually forgiven in 2008. Thomas' mandatory financial disclosures never revealed these gifts, which only came to light after investigative journalists unearthed them. Should the IRS investigate Thomas and determine his gifts count as taxable income, he could be on the hook for millions of dollars in unpaid taxes.
Following 32 years on the bench, Thomas is the longest-serving SCOTUS justice, having been appointed by then-President George H.W. Bush in 1991.
READ MORE: Ex-judge: Clarence Thomas RV loan another example of justice 'doing an end run' around ethics rules
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