Supreme Court upholds Biden-backed tax on foreign corporate investments
(WASHINGTON EXAMINER) – The Supreme Court on Thursday rejected a challenge to the constitutionality of taxation on foreign income in a case backed by business and anti-regulatory interests who said the provision was similar to a “wealth tax.”
The 7-2 decision by Justice Brett Kavanaugh upheld the mandatory repatriation tax, siding with the Biden administration to uphold the provision of the 2017 corporate tax reform law. The law imposes a one-time levy on undistributed profits from U.S. shares of foreign corporations majority-owned by U.S. residents, and it is expected to generate $340 billion.
The decision stems from a case known as Moore v. United States brought by Charles and Kathleen Moore, a Washington state couple who argued that the $15,000 increase in their tax bill, due to the tax, was unconstitutional because it taxed unrealized income.