Posted on 06/26/2023 12:50:02 PM PDT by CFW
The Supreme Court announced Monday it would take up a case considering whether Congress can tax income before it is received.
The case, Charles G. Moore et ux. v. United States, stems from a Washington state couple’s 2019 lawsuit against the government for a nearly $15,000 tax bill imposed on their small investment in an overseas company, from which they never earned a profit. It considers whether taxes on unrealized gains are legal under the 16th Amendment, which enables Congress to tax incomes “without apportionment among the several States.”
Hank Adler, Burra Executive Professor of Accounting at Chapman University, previously told the Daily Caller News Foundation the Moores’ case is “the most important tax case in almost 100 years.”
(Excerpt) Read more at dailycaller.com ...
yep
FAIRtax, anyone?
Help us replace the Marxist inspired “progressive” income tax with the FAIRtax and abolish the IRS.
We’ll make April 15th into just another nice Spring day!
Read all about the FAIRtax at https://www.fairtax.org and https://www.bigsolution.org.
We will never be a FRee people so long as we have an income tax and an IRS!
Do we also get an unrealized loss deduction?
After Enron, it seems the USG wants to try and impose Mark to Market on the taxpayer.
“Do I still owe taxes on a profit I never saw?”
That happens all the time when stock options are granted to employees and then lose value.
I’m sure they’ll have to. When you’re taxed on the imputed assumed gain, it’d have to adjust your basis. Then when you sell later for less than you paid, you have a loss not just from the original amount, but from the highest basis. In fact, mark to market should work both ways. If the value even goes down in value, you should be able to book a loss then even if you don’t sell. Same principle they’re going with.
This is a bad idea all around. It’s going to make federal tax receipts more volatile, create lots more compliance effort, and create huge whipsaws in your paper income, and remove a big tool for tax planning. Stupid, stupid, stupid. Oh yeah, it’s the feral goobermint, never mind.
And it worked so good that time!
Roberts likes taxes — everything is merely a tax
Exactly. That’s a pet peeve of mine. You make 10% but inflation is also 10%, so basically you just held your ground, but the IRS (and the tax code) somehow concludes you own them taxes on no net get in purchasing power. They index the brackets, they should index capital gains.
Exactly. Offset capital gains taxes while eliminating capital loss write offs.
This is the logical progression of theft by government. The democrats want us poor and controlled, otherwise dead.
Using this kind of lop-sided logic, shouldn’t everyone who ever bought a lottery ticket, be forced to pay on the winnings of the lottery; whether or not they won the lotter?
Because, to the IRS, the Lottery, just like any investment, has the POTENTIAL of realizing a profit.
You cannot fix stupidity, but you can bludgeon it into submission, whether you stop bludgeoning is your call.
How did the founding fathers ban income tax? They certainly were reluctant to tax and were careful what tax revenue was spent on, but I cannot find anything specifically referencing an income tax. Please, share how you came to this conclusion.
And just because I ask for a source doesn’t mean I am pro any kind of tax least of all income tax.
I would argue, tangentially, that the 13th and 14th amendments prohibit this unrealized profit tax as it essentially makes us slaves to the federal government.
SCOTUS is unqualified?
Sorry, but SCOTUS is very qualified to rule on the Constitutionality of cases which challenge the Constitutionality of specific tax laws.
There is a reason they needed a constitutional amendment to impose an income tax. Article I, section 9 said in part, “No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken.”
If they win the case and thus the govt can’t tax unrealized gains, can that be used as precedent to outlaw property taxes, since those are based on unrealized gains?
Anyone paying property taxes are taxed on unrealized gains, since they are still living in the house that is being taxed.
Flat tax for me.
Somebody else (not me) will be deciding what’s “fair”. Flat.
and of course all the markets will crash as every one exits.
NYSE $0.00 NASDAQ $0.00
Record lows as the markets close for good. Dollar worthless and the US adopts the Yuan.
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