Tuesday, the U.S. Supreme Court heard oral arguments in Moore v. United States, a case that, at first glance, is one dispute over taxation of unrealized foreign gains. However, many on both sides believe that a ruling favoring the plaintiffs in this landmark case could have historic ripple effects on what Congress can or cannot tax — especially wealth.
In Moore, the plaintiffs argue that a mandatory repatriation tax (MRT) introduced by the 2017 Tax Cuts and Jobs Act (TCJA) is unconstitutional. The one-time tax is supposed to prevent shareholders from obtaining windfalls on undistributed offshore earnings. The IRS levies the tax on U.S. taxpayers with a specified amount of ownership in certain foreign corporations.
