The Supreme Court is not closing the door on a wealth tax

The U.S. Supreme Court failed to realize the worst fears of its progressive critics on Thursday by issuing a decision affecting Congress' power to tax. By a vote of 7 to 2, the highest US court Certain The constitutionality of an important provision of the 2017 tax cut law that Donald Trump signed into law. This provision requires U.S. shareholders who own 10% or more of foreign corporations that are primarily owned or controlled by Americans to pay a one-time tax. Previously, they were only owed taxes on profits brought into the United States.

Experts say that this clause seems clear, but it could have had serious consequences if it was proven unconstitutional. The latter argued that a third of the tax code is threatened by the approach taken by the couple – Charles and Kathleen Moore – who had to pay almost $15,000 to a taxman in 2018 on gains of more than $500,000 made through an investment in a US-based company. India.

Progressive economists and politicians were particularly concerned that repealing this provision would end their efforts to impose a wealth tax in the United States. Because this repeal would have been accompanied by a new definition of what “income” is, and therefore what is subject to tax. This was said by the author of the book resolutionBrett Kavanaugh was careful to stress in a footnote that his opinion did not represent support for a wealth tax. But the fact remains that the Supreme Court has not closed the door on such a matter.

Only Justices Clarence Thomas and Neil Gorsuch declined to join the majority.

We are still awaiting the Supreme Court's decision on the issue of criminal immunity claimed by Donald Trump. Further decisions will be made on Friday.

Note: We've reached the penultimate day of this blog's second fundraiser in 2024. As the thermometer indicated Thursday morning, the target goal is achievable as long as the pace of the first three days doesn't waver. I therefore ask all who regularly visit this blog at this critical period in American political life to contribute to its maintenance, if they have not already done so. And thank you from the bottom of my heart to those who have already done so!

(Photo by Reuters)