US Supreme Court upholds tax on Americans' foreign earnings

Reported 8 months ago

In a 7-2 ruling, the US Supreme Court upheld a tax on Americans who have invested in certain foreign corporations, rejecting a challenge against it by Charles and Kathleen Moore. The tax, part of a Republican-backed law signed by former President Donald Trump, applies to owners of at least 10% of a foreign company controlled by Americans, even if the profits have not been distributed. The decision clarified that the tax falls within Congress's constitutional authority to tax, though the court did not address whether unrealized gains can be taxed without apportionment among states. The ruling potentially avoids a $340 billion loss for the US government over a decade and also impacts proposals for a wealth tax on the super-rich.

Source: YAHOO

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