What Does Moore v. United States Mean for a Future Wealth Tax?
Summary from the AllSides News Team
On Thursday, the Supreme Court upheld the "mandatory reparation tax" (MRT), a provision of the Tax Cuts and Jobs Act, which was signed into law by former President Donald Trump in 2017.
For Context: The provision imposed a one-time tax on American shareholders in foreign corporations that are controlled by Americans.
The Details: Charles and Kathleen Moore asked the Supreme Court to overturn the provision on the grounds that they should not be taxed on "unrealized gains." Deciding to uphold the provision in a 7-2 decision, Supreme Court Justice Brett Kavanaugh wrote for the majority: "They cannot distinguish the MRT from other longstanding taxes that they concede are constitutional." Kavanaugh said, "Our analysis today does not address … taxes on holdings, wealth, or net worth," leading opinion writers to debate the implications of Moore on a wealth tax.
From the Left: "Kavanaugh’s Moore opinion includes a bonanza of loaded language that any competent tax lawyer can seize upon to protect their richest clients from wealth taxes, should Congress ever actually enact such a federal tax in the future," writes Ian Millhiser for Vox (Left bias).
From the Right: An opinion from The National Review Editorial Board (Right bias) says, "However the justices might ultimately rule on [a wealth tax], it doesn’t change the fact that the idea of taxing unrealized gains is a bad one that... would be unfair, unworkable, and economically destructive."
Featured Coverage of this Story
From the Center
Supreme Court Refuses To Upend The Tax Code In Ruling On Unrealized Gains
he Supreme Court declined to overturn a tax policy Thursday that critics warned could have had broad implications on federal tax policy and the U.S. economy, ruling against a couple who claimed they should not have been taxed on money they invested but hadn't made a profit on.
After being taxed on an investment they had in an Indian company, couple Charles and Kathleen Moore asked the Supreme Court to overturn what’s known as the “mandatory repatriation tax” (MRT), a provision of the GOP’s 2017 tax law that imposed a one-time tax...
From the Left
The Supreme Court’s new tax decision is great news for billionaires
It’s difficult to concisely summarize the Supreme Court’s Thursday decision in Moore v. United States, which rejects a challenge to a one-time federal tax targeting some investors in foreign corporations. But the bottom line is that Moore is bad news for anyone hoping that the Supreme Court would launch a comprehensive attack on the federal government’s ability to raise taxes.
Nevertheless, the decision is still excellent news for billionaires.
From the Right
Taxing Net Worth Is a Terrible Idea
The Supreme Court on Thursday upheld a provision of the Trump tax cuts that taxed American shareholders of U.S.-controlled foreign companies on otherwise untaxed company earnings. The case, Moore v. United States, generated interest for the potential implications it would have for a wealth tax — specifically, one based on taxing investment gains that have not yet been realized. Ultimately, the Supreme Court punted on this question, describing its decision as “narrow” and “limited.” The majority opinion by Justice Brett Kavanaugh neither opened the door for such a wealth tax nor slammed it shut. The concurring...
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