Democratic Senators Question Supreme Court Justice Clarence Thomas on $267,230 Motorhome Loan

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ICARO Media Group
Politics
16/05/2024 20h13

The senators are pressing Thomas to disclose whether he repaid his wealthy friend, Anthony Welters, any portion of the principal for a $267,230 loan used to purchase a luxury motorhome.

The senators' inquiry, outlined in a letter to Thomas' lawyer on Tuesday, focuses on the possibility that Thomas may have violated tax laws if the loan was forgiven but not reported on his tax returns. Wyden and Whitehouse point out that Thomas never repaid a significant portion of the loan and there is uncertainty regarding whether the loan was forgiven.

The loan in question was first reported by The New York Times in August, revealing that Thomas had acquired a Prevost Le Mirage XL Marathon, a luxurious motorhome, with the financial assistance of Welters, a close friend. The Senate Finance Committee, chaired by Wyden, discovered in October that Welters had stopped collecting principal or interest on the loan in late 2008, according to the senators' letter.

Furthermore, the senators note that Thomas has not reported any income from the forgiven debt on his financial disclosure reports, raising suspicions that he may have also failed to report the forgiveness as income for tax purposes. Federal law mandates that any forgiven debt amount be reported as income on tax returns.

The senators express dissatisfaction with Thomas' lawyer's response in January, considering it a "non-answer." Wyden and Whitehouse argue that the term "satisfied" used by Thomas' lawyer to describe the loan repayment is ambiguous and demands clarification.

Highlighting the significance of the matter, the letter states, "There should be a simple answer as to whether Justice Thomas had hundreds of thousands in debt forgiven so that he could retain possession of a luxury motor coach that doubles as a second home." If the debt was indeed canceled, forgiven, or discharged for an amount less than what Thomas owed, he would have been required to report it as income on his tax returns.

The senators emphasize that Thomas' apparent inaction to address these concerns has created a perception that he may have failed to report substantial debt forgiveness, along with the corresponding income taxes owed. Consequently, the senators believe that such a serious tax violation warrants a thorough investigation, particularly given Thomas' position as a member of the Supreme Court.

Wyden and Whitehouse, who chairs the Senate Judiciary Committee's subcommittee on federal courts, have given Thomas' lawyer, Elliot Berke, until June 3 to provide a clarification on the loan's terms and repayment.

This inquiry into the motorhome loan is only one aspect of a broader ethics controversy surrounding Thomas. In April 2023, ProPublica reported that the conservative justice had accepted luxury vacations from Republican billionaire Harlan Crow, potentially violating a financial disclosure law. Additionally, Thomas' wife, Ginni Thomas, has been involved in efforts to overturn the results of the 2020 election, leading Democrats to call for Thomas's recusal in an appeal by former President Donald Trump.

As the ethical inquiry continues, the public awaits further information and a response from Justice Thomas and his representative regarding the loan and the potential tax violations.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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