For years, conservative billionaires have treated Supreme Court justice Clarence Thomas to opulent vacations and trips on their private jets. If these were anything other than disinterested gifts, then they’re taxable — and Thomas owes the IRS a huge bill.

When Supreme Court justice Clarence Thomas flouted longstanding ethics laws by refusing to disclose billionaire gifts, he avoided public outrage for years. Based on new revelations about the potential motivations behind those gifts, he also may have avoided laws requiring Americans to pay taxes on such donations, legal experts say.

Recent reporting from ProPublica revealed that Thomas was showered with luxury gifts from wealthy benefactors, including vacations, private flights, school tuition, and even a loan for a high-end RV. Though Thomas has insisted the gifts were just the innocent generosity of friends, many came after he threatened to resign over the justices’ low salaries — and one of Thomas’s vacation companions said the money was given to supplement the justice’s “limited salary.”

According to experts, if these benefits were given to Thomas as a way to buttress his regular pay and keep him on the court, they could be considered a taxable transaction rather than a gift. By refusing to publicly disclose such transactions, Thomas made it impossible for watchdog groups to alert tax-enforcement officials about the potential issue in real time.

  • doppelgangmember@lemmy.world
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    1 year ago

    “By refusing to publicly disclose such transactions, Thomas made it impossible for watchdog groups to alert tax-enforcement officials about the potential issue in real time.”

    How does a "public servant" get to just choose to not release financial transactions?

    Mind-boggling

  • dual_sport_dork 🐧🗡️@lemmy.world
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    So I am not a legal eagle, but it sounds to me like no matter what either one of the following is true:

    A) Thomas accepted bribes from conservative malefactors to remain in on the court and rule consistently with their politics, which is corrupt.

    B) Thomas accepted the same as “gifts,” pretending that they came with no strings attached, and failed to report them on his taxes. Which is illegal.

    • Catoblepas@lemmy.blahaj.zone
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      Ah, you forgot the only option conservatives can entertain as true: everyone does it anyway and liberals are only caring about it now to [favorite culture war paranoid fantasy].

      • Flying Squid@lemmy.world
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        In Clarence Thomas’ case, it gives them a convenient excuse to call people on the left racists. Because apparently it’s racist when a black person is a Republican and you criticize them fairly.

    • Evilcoleslaw@lemmy.world
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      Potentially. The government would have to actually prove the supposed gifts were actually payment in exchange for some sort of consideration or work. Legitimate gifts are subject to exemptions and generally taxed on the gift giver’s side as well.

      Each individual can give out somewhere around $17k per recipient per year tax free and then beyond that a total of currently around $12M in total gifts over that limit tax free in a lifetime.

      I agree it doesn’t pass the smell test generally but nowadays you essentially need direct unequivocal proof of it being a bribe.

      • Froyn@kbin.social
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        1 year ago

        If only we had some kind of record showing how he ruled when cases they were “interested in” were put before the court…

        • OldWoodFrame@lemm.ee
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          It’s not that easy because you don’t bribe a Supreme Court Justice for decades because of the one case that might involve a company you’re invested in. They’re trying to align his decisions with their political opinions, and keep him from retiring so someone who doesn’t share their political opinions doesn’t get his spot.

    • neptune@dmv.social
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      1 year ago

      It’s funny, because I remember reading this exact same conclusion just days after the first story about him broke last year. And yet nothing has happened. I guess it’s good it’s in the news again.

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    1 year ago

    If the IRS, in the early days of Covid, can go after me for making a 200 dollar mistake 3 years prior they can throw his ass in jail.

  • BeautifulMind ♾️@lemmy.world
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    1 year ago

    This sort of thing helps me understand why the first thing the house GOP majority leader demanded was defunding of the IRS. Not only is their commanding majority for the next generation on the high court vulnerable if the justices are audited, the new house majority leader has shady finances and claims not to have a bank account with any reportable amount of money in it

    Yeah I hope they get audited and it’s uncomfortable AF

  • Urist@lemmy.blahaj.zone
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    I am not allowed to accept gifts at work valued more than $50 because I am part of a tip pool.

    And I don’t want to, because it would make me feel guilty. I am no one of consequence.

    I am burdened with the ethics of accepting sealed Christmas cards on the job.

    • Case@lemmynsfw.com
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      I briefly worked as a state employee, IT for a school district.

      I swear I had a full day during orientation regarding “gifts.” What was considered a gift, who the actual giver was, limitations on receiving them, how to report them however minor, etc.

      The only time it came up was during an emergency that required an extended shift. Overtime pay would have been considered a “gift of the state” and wasn’t allowed (somehow? I was young, whatever) and I got half a day off rather than OT pay. Coming from a retail background, half a day off and I didn’t lose any money? Pretty sweet in my mind at the time.

    • FReddit@lemmy.world
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      I had to turn down an offer of free soup from a company I interviewed.

      And this asshole rakes in millions in graft.

      Justice is indeed blind.

    • Pika@sh.itjust.works
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      It pisses me off when companies do that. My work’s the same exact freaking way. The bottom level employees can’t accept any type of gifts because it could be seen as accepting a bribe, however you can watch management level go out with a vested interest and have that interest pay for the lunch has incentive to accept their contract or the other way around management level will pay for the interest lunch in hopes to gain favor for them. It’s sickening

    • Monkey With A Shell@lemmy.socdojo.com
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      The rules only get applied to those under the people making them. Back when I started my job there where similar admonishments about accepting vendor gifts and such. My role involved classifying sites to allow access at the behest of clients, one which came from an executive assistant to allow a vendor to take said exec to the Superbowl.

      Rules where subsequently tighened/reenforced so maybe that wouldn’t happen today. The scoutus has continued to resist any sort of oversight claiming sufficient self governance for similar reasons though. Their own judgement is the only one valid in their opinion.

  • UnpopularCrow@lemmy.world
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    1 year ago

    Any minute now something will be done to show Thomas’s actions have consequences! Any minute now…. any minute….

    • Daft_ish@lemmy.world
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      Remember when we waited 4 years for Trump to lose an election and we still aren’t rid of the fuck wit?

      Thomas should have never been on the court considering Anita but here we are…

      If our government were a spectrum of good vs bad the bad far outweighs the good.

  • agitatedpotato@lemmy.world
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    Id bet my paltry retirement fund on the fact that more than most Republicans in government also are comitting tax fraud and easily around half of all Democrats there too.

    • Everythingispenguins@lemmy.world
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      Well I just asked everyone in Congress and they all said that they are definitely not doing that and where did I get that silly idea from. So I guess you are losing your retirement.

    • SCB@lemmy.world
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      I know literal drug dealers who have been more honest with the IRS than Clarence Thomas.

      That’s a hell of a sentence to write lol

  • collapse_already@lemmy.ml
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    1 year ago

    Even if they were disinterested, gifts in excess of a certain value are taxable. Last I checked, the threshold was $12,000. The gifts Thomas received seem likely to have exceed that threshold. If he didn’t report them on his taxes, he is committing tax fraud.

    • homura1650@lemm.ee
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      The giver is responsible for reporting gifts and paying taxes on them, so Thomas is clear on that front. Currently, the yearly exemption is $17,000 (per donor/donee pair). Beyond that the giver must report gifts, but still doesn’t owe unless they (the donor) have reached their lifetime exemption of $13 million.

  • alienanimals@lemmy.world
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    Treason and tax fraud! How long do you think you would get away with those crimes?

    Like George Carlin said, “It’s a big club, and YOU ain’t in it!”

    • Jaderick@lemmy.world
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      They made the case that he is doing tax fraud, but the government is extremely limited/ just won’t charge him because of his position.

      If Clarence won’t leave then I hope the other way a Supreme Court Justice leaves their seat comes extremely soon.

  • badbytes@lemmy.world
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    Isn’t he still a citizen. How is the law not applied? When is action taken, and by who. The IRS?

  • Kalysta@lemmy.world
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    The founders dropped the ball when they gave us no way to recall a supreme court justice.

    Granted their massive failure of imagination has ended us up with the shitshow that is congress today