Supreme Court Justice Clarence Thomas is committing tax fraud

Supreme Court Justice Clarence Thomas is committing tax fraud, per the Jacobin.


Recent revelations from ProPublica have brought to light the various luxury gifts bestowed upon Justice Clarence Thomas by affluent supporters, encompassing vacations, private flights, school tuition, and a loan for a high-end RV. Thomas, contending that these were mere expressions of friendship, received many of these gifts after expressing his intent to resign due to justices' low salaries. However, if these benefits were offered to supplement Thomas's regular pay and retain him on the court, they might be regarded as taxable transactions instead of gifts.

Experts suggest that if these gifts were intended to bolster Thomas's income and incentivize him to stay on the court, they could be treated as taxable income. Thomas's failure to disclose such transactions publicly prevented watchdog groups from promptly notifying tax-enforcement authorities of potential issues. The public's concern revolves around whether Thomas's acceptance of undisclosed gifts violates federal ethics laws. Additionally, lawmakers scrutinize a $267,000 loan Thomas used to purchase an RV, arguing that if any part of the loan was forgiven, Thomas would be liable for taxes on that amount.

While Thomas denies that the gifts influenced his court rulings, questions arise about the tax implications. If these generous donations aimed to retain the conservative justice on the Supreme Court, they might not meet the criteria for tax-free gifts, which require "detached and disinterested generosity." If the gifts were designed to sway court actions or job decisions, they could be considered taxable income, regardless of conclusive evidence of quid pro quo.

David Cay Johnston, a visiting lecturer at Syracuse University’s College of Law, suggests that Thomas's actions could lead to the removal of any judge in America and potentially result in criminal prosecution for income tax fraud and false filings in mandatory financial ethics disclosure statements. The taxation of unreported income has gained attention, as evidenced by the sentencing of President Donald Trump’s financial chief for failing to report or pay taxes on off-the-books compensation.

Justice Thomas has not released his tax returns, leaving uncertainty about whether he paid taxes on the gifts he received. In the late 1990s, Thomas had expressed dissatisfaction with the compensation for Supreme Court justices, warning that one or more might leave if salaries were not increased. Despite such concerns, he remains a prominent figure on the Supreme Court, earning an annual salary ranging from $285,400 to $298,500.