Supreme Court will hear case with major implications for liberal 'wealth tax' plans

From Washington Examiner.com (June 28):

The Supreme Court has agreed to hear a tax case that could put the fate of the Biden administration's "wealth tax" and other future tax proposals in jeopardy.

The high court decided on Monday to take up Moore v. United States, which challenges the "mandatory repatriation tax" as a violation of the Sixteenth Amendment. If found unconstitutional, it could pump the brakes on President Joe Biden's tax proposal aimed at taxing the U.S.'s ultra-wealthy.

Moore v. United States challenges what counts as taxable income and whether income has to be realized to be taxed. The petitioners argue they did not realize or receive any payment from the company in which they had an investment.

The case centers around the Moores, who made an almost $40,000 investment into an Indian corporation in 2005. They did not receive any money or other payments from the company, despite the corporation making a profit every year.

Under the 2017 tax reform law, which came out of the Trump administration, the petitioners learned that they were subject to a mandatory repatriation tax. This law required taxpayers to pay taxes on reinvested earnings — something the Moores are now challenging as unconstitutional. They paid the tax, worth $14,729, and sued for a refund.

The Sixteenth Amendment, which authorizes Congress to "lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States," is significant to the federal tax system.

The amendment applies to taxes on realized income only, the petitioners argue, and therefore their payment through the mandatory repatriation tax is unconstitutional.

The outcome of this case could have a significant impact on the Biden administration's "wealth tax," with many members of Congress already calling attention to the possibility that the proposal is another unconstitutional tax on unrealized income or gains.

Earlier this year, Biden proposed a 25% minimum tax on all wealth over $100 million, which is estimated to target 0.01% of the nation's population.

If the court rules in favor of the Moores, it could put the wealth tax proposal and changes to the taxing of financial market products at stake.

However, it is not likely that a decision will be made for some time. Hearing for arguments will most likely begin in October, as the Supreme Court has several major decisions to get through before it recesses for the summer. [source]

I hope eventually the Supreme Court rules against the wealth tax. Otherwise America is completely screwed.