When Supreme Court justice Clarence Thomas flouted longstanding ethics laws by refusing to disclose billionaire gifts, he avoided public outrage for years.
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.
Lawmakers have also zeroed in on one particular donation — a $267,000 loan Thomas used to purchase a RV — arguing that if part of that loan was forgiven, Thomas would have to pay taxes on that amount.
Thomas has denied that the gifts were granted in exchange for favorable court rulings.
Thomas has not released his tax returns, so it is unclear whether or not he paid taxes on the gifts he received.
The US gift tax law, established in 1924, was created to minimize estate and income tax avoidance.
According to the law, any transfer of money or property from one person to another is subject to a gift tax. »
