Senate inquiry finds Supreme Court Justice Clarence Thomas had $267k loan for motor coach forgiven
1. Clarence Thomas' $267,000 RV loan was forgiven:
- A Senate inquiry finds that Supreme Court Justice Clarence Thomas had most of his $267,000 loan for a motor-coach forgiven.
- The loan was made by Anthony 'Tony' Welters, a longtime friend of Thomas, who forgave the debt after nine years of interest-only payments.
2. Ethics concerns surrounding Thomas:
- Thomas has faced scrutiny over undisclosed travel and ties with wealthy conservative supporters.
- The Supreme Court is debating whether to adopt an ethics code, and three justices have expressed support for such a move.
3. Thomas' use of the loan:
- Thomas borrowed the money to buy a 40-foot refitted tour bus in which he and his wife tour the country.
- He has mentioned staying in Walmart parking lots and RV parks.
4. Loan repayment details:
- In a handwritten note, Thomas agreed to pay 7.5% interest per year and repay the loan in five years.
- The time to repay the loan was later extended until 2014.
5. Loan forgiveness and tax implications:
- Documents show that Welters forgave the loan in 2008.
- Forgiven or cancelled debt counts as income for tax purposes, raising potential tax liability for Thomas.
6. Call for transparency:
- Senator Ron Wyden, the committee chairman, urges Thomas to provide information on the forgiven debt and whether he properly reported it.
- Thomas has not included forgiven debt in his annual financial disclosures.
7. Other ethics concerns at the Supreme Court:
- Reports reveal that Thomas accepted undisclosed luxury trips and other hospitality from a Republican megadonor.
- Justice Samuel Alito also failed to disclose a private trip, and Justice Sonia Sotomayor used college visits to advance book sales.
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