Free Republic

The fate of an obscure provision of President Donald Trump’s 2017 tax package, which will be reviewed by the Supreme Court next week, has many experts panicked over the potential to destabilize the nation’s tax system. In addition, some say the outcome could preemptively block Congress from creating a wealth tax. But the case has also exposed questions about the accuracy of the personal story a Washington State couple presented to the court in making their constitutional challenge to the tax, a one-time levy on offshore earnings. Charles and Kathleen Moore appear to have closer ties to the company central...

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...