Supreme Court to review case impacting liberal ‘wealth tax’ proposals.

The Supreme Court Takes on Tax Case That Could Impact Biden’s “Wealth Tax”

The fate of President Joe Biden’s proposed “wealth tax” and future tax proposals hangs in the balance as the Supreme Court agrees to hear a crucial tax case.

Moore v. United States: Challenging the “Mandatory Repatriation Tax”

The high court has decided to take up Moore v. United States, a case that challenges the constitutionality of the “mandatory repatriation tax” under the Sixteenth Amendment.

If found unconstitutional, this tax could hinder President Biden’s efforts to tax the ultra-wealthy in the United States.

The heart of the case revolves around the definition of taxable income and whether income must be realized to be subject to taxation. The petitioners argue that they did not receive any payment from the Indian corporation in which they had invested, despite the company making a profit every year.

Under the 2017 tax reform law, the petitioners discovered that they were obligated to pay a mandatory repatriation tax on their reinvested earnings. They paid a tax of $14,729 and subsequently sued for a refund, claiming that this tax violated the Sixteenth Amendment.

The petitioners contend that the Sixteenth Amendment only applies to taxes on realized income, making the mandatory repatriation tax unconstitutional.

The outcome of this case could have far-reaching implications for President Biden’s “wealth tax” proposal. Critics argue that the proposal may also be an unconstitutional tax on unrealized income or gains.

President Biden’s proposed “wealth tax” aims to impose a 25% minimum tax on all wealth exceeding 0 million, targeting only 0.01% of the nation’s population.

If the Supreme Court rules in favor of the petitioners, it could jeopardize the “wealth tax” proposal and potential changes to the taxation of financial market products.

However, a decision is not expected to be reached soon. Oral arguments for the case are likely to begin in October, as the Supreme Court has other major decisions to address before its summer recess.

Click here to read more from The Washington Examiner.

*As an Amazon Associate I earn from qualifying purchases