Supreme Court's Potential Ruling on Wealth Tax Sparks Controversy
The Supreme Court is considering a case challenging a provision of the 2017 tax bill that imposes a tax on foreign income. While the court seemed inclined to uphold the tax, it avoided addressing the broader question of Congress' ability to enact taxes based on wealth instead of income. The case brought by a Washington state couple argues that the tax violates the 16th Amendment. The provision in question is expected to generate $340 billion and has drawn attention as some argue it is similar to a wealth tax. The court's decision could have implications for future tax legislation and the constitutionality of the tax code.