Free Republic

The Supreme Court issued a much-awaited ruling in a tax case, holding that the mandatory repatriation tax passed as part of the 2017 Trump tax cuts did not exceed Congress’ constitutional authority. The court’s holding was narrow, and significant in large part for issues it did not address, leaving open questions related to the constitutionality of alternative taxing schemes—such as a so-called wealth tax—for another day. The 7-2 opinion in Moore v. United States, authored by Justice Brett Kavanaugh, noted that Article I of the Constitution affords Congress broad powers to lay and collect taxes, both direct and indirect taxes,...

The Supreme Court ruled Thursday that a part of President Trump's 2017 'Tax Cuts and Jobs Act' that levied a tax on capital appreciation is constitutional. Justice Brett Kavanaugh wrote the majority opinion. Justices Clarence Thomas and Neil Gorsuch dissented. The court ruled 7-2 that the mandatory repatriation tax, or MRT, is constitutional under the taxation regimes defined in Article I and the 16th Amendment. In short, the MRT imposed a one-time requirement for US citizens and companies to repatriate money held overseas.In 2005, Charles and Kathleen Moore invested $40,000 in an Indian business named KisanKraft, which marketed power tools...