The Supreme Court announced Monday it will weigh in on the constitutionality of wealth taxes by deciding whether Congress may require taxpayers to pay their share of earnings from a foreign company, even if they received no dividends or income. These are referred to as “unrealized gains.”But last year, the 9th Circuit Court upheld part of the 2017 tax bill passed by the Republican-controlled Congress which imposed a one-time tax on Americans who owned shares in foreign corporations that gained in value. The Moores said they received no income or dividends from their investment in a company in India which supplies equipment to small farmers, and they sued, alleging the tax was unconstitutional. They lost before a federal judge and appeals court. “There is no blanket constitutional ban on Congress disregarding the corporate form to facilitate taxation of shareholders’ income,” the appeals court said.

Source: Los Angeles Times June 26, 2023 17:05 UTC