Supreme Court's Landmark Case Threatens "Wealth Tax" and Tax Code Overhaul
The Supreme Court is set to hear a case that could have significant implications for the U.S. tax system and potentially impact proposals for a wealth tax. The case, Moore v. United States, involves a couple who invested in an India-based company and were later required to pay taxes on their share of the company's reinvested earnings under the mandatory repatriation tax. The couple argues that the tax is a violation of the 16th Amendment as it taxes unrealized gains and not income. The Supreme Court's decision could determine the extent of Congress' power to tax certain types of unrealized gains and potentially disrupt the tax system.