Supreme Court Ruling Threatens Wealthy Individuals' Tax Obligations
The Supreme Court heard oral arguments in the case of Moore v. United States, which involves a disputed $15,000 tax bill and has significant implications for the federal government's ability to tax profits on investments. The case centers around the interpretation of the Sixteenth Amendment and whether profits need to be realized as cash before they can be taxed. If the Court rules in favor of the taxpayers, it could potentially undermine various wealth tax proposals and have far-reaching consequences for the federal tax code. Justices Clarence Thomas and Samuel Alito, who have ties to wealthy individuals, may be inclined to protect the financial interests of their friends, while justices Brett Kavanaugh and Amy Coney Barrett seemed willing to uphold the repatriation tax in this case. Overall, the Court's decision could make it even harder to tax the wealthy.
