The existence of the $267,230 loan, made by the businessman Anthony Welters in 1999 and forgiven in 2008, was first reported by the New York Times.
Yesterday, the Times quoted Michael Hamersley, a tax lawyer and congressional expert witness, as saying: “‘This was, in short, a sweetheart deal’ that made no logical sense from a business perspective”.
(loan, that was forgiven? That's simply avoiding the gift tax, and the legalities of gifts to judges)
The Senate finance committee said it has now seen documents that showed an annual interest rate of 7.5% and only annual interest payments of $20,042. The committee also said it had seen a note from Thomas promising to abide by the terms.
“None of the documents reviewed by committee staff indicated that Thomas ever made payments to Welters in excess of the annual interest on the loan,” the panel said.
As described by the Times, when the loan came due, in 2004, Welters granted an extension, then, in late 2008, Mr Welters simply forgave the balance of the loan, according to the committee’s report.
A contemporaneous note, the committee said, showed Welters saying Thomas’s “interest only” payments exceeded the value of the RV. But evidence did not back up this claim, with Welters having given investigators only one copy of a canceled check from Thomas, for the annual interest amount. (paying about 8 years, at 20k, leaves about 100k in debt forgiveness)
Hamersley said the Internal Revenue Service would treat any such gift as taxable income.
Ron Wyden, the Democratic chair of the Senate finance committee, said: “Now we know that Justice Thomas had up to $267,230 in debt forgiven and never reported it on his ethics forms.
“None of the documents reviewed by committee staff indicated that Thomas ever made payments to Welters in excess of the annual interest on the loan,” the panel said.
As described by the Times, when the loan came due, in 2004, Welters granted an extension, then, in late 2008, Mr Welters simply forgave the balance of the loan, according to the committee’s report.
A contemporaneous note, the committee said, showed Welters saying Thomas’s “interest only” payments exceeded the value of the RV. But evidence did not back up this claim, with Welters having given investigators only one copy of a canceled check from Thomas, for the annual interest amount. (paying about 8 years, at 20k, leaves about 100k in debt forgiveness)
Hamersley said the Internal Revenue Service would treat any such gift as taxable income.
Ron Wyden, the Democratic chair of the Senate finance committee, said: “Now we know that Justice Thomas had up to $267,230 in debt forgiven and never reported it on his ethics forms.
In 1999 a Prevost Marathon Le Mirage XL retail average was $700,000.00. A 2022 model can set you back 2 million. Even if he paid the 267k for the bus, it was a STEAL!!
ReplyDeletethe story reported that it was not a new one, it was 8 years old
DeleteEverybody in my neighborhood has something exactly like that. No biggie. Oh, right....no they don't. I'd like to see a serious look at all the sitting Justices. This is Iron Curtain level graft.
ReplyDeleteit's not uncommon for the elected and appointed in Washington DC to get extravagant gifts and "loans" of things.
DeleteThe war hero and head of the military budget committee, Duke Cunningham, was living on a corporate yacht on the Potomac, went to prison for 2.4 million in bribes, most of it from the corporation he was giving defense contracts to, who paid him 1.5 million for his 800k house. Here, read this https://en.wikipedia.org/wiki/Duke_Cunningham
Skip to Scandals and corruption
and of course, there is the inside info that results in everyone in govt getting ridiculously wealthy, did you follow the news in 2020 of the billionaires made during covid quarantine from those who knew how to pivot on stocks from the businesses that would be closed down, to those allowed to stay open (Costco, Amazon)
DeleteAnd the rich get richer
ReplyDeleteSupreme Court Justices are not doing this kind of things... Only Clarence Thomas is.
ReplyDeleteHe got a $287,000 loan that he never repaid. That is called a bribe where I live.
Thomas vacationed for the past decade on a billionaire's yacht for free, traveled on his plane for free and stayed at his vacation homes countless times. Oh and that same billionaire bought Thomas' mother's home... but lets her live in the house rent free. And if that was not enough the same billionaire pays for Thomas' nephew education.
Seems to me like there is one billionaire in this country that owns a Supreme Court Justice. Not exactly the way the founding father envisioned the system working.
Thomas is corrupt beyond belief but because he is VERY conservative the Republican party stands behind him. There are 8 more justices in the Supreme Court (conservative and liberal) and there are no indications that other members of the court are anywhere near as corrupt as Thomas is.
Did you know this last year?
DeleteDid you know of this 5 years ago?
Since we can't have a discussion, due to the limitations of this media, I'll answer no for you
So, since you didn't know this until recently this year, what can you deduce? That you don't know the private lives and financial situations of Supreme Court Justices.
Ergo, when you state "only Clarence Thomas is doing this kind of things" I must reply, "you don't know that. You didn't know this 12 months ago, and there are far more things neither of us know about who influences who on the Supreme Court, or any other political appointed office. Since they are appointed, do you know how they get to be selected to be appointed?
Those choosing them carefully select them based on parameters. One of those is knowing how they'll likely rule on any topic of interest to the selection committee.
Those who are appointed may or may not feel a debt to the selection people, and since it seems to you that there is one billionaire that owns a Justice, may I add, I believe there are more.
After all, you are not special, I can feel that way too, and claim the same thing you do. But about others.
Also, it's not impossible, and it's not even improbable, as we both agree that Thomas has sold out.