Overview

• The Supreme Court is considering a case brought by Charles and Kathleen Moore, who are challenging a provision of the 2017 tax bill that taxes their shares in an Indian company, KisanKraft, even though they never received any money from the company.
• The Moores argue that the tax violates the 16th Amendment, which allows the federal government to impose an income tax on Americans.
• The case has gained attention as it could have implications for future wealth taxes, which would apply not to the incomes of the very richest Americans but to their assets.
• Several justices indicated through their questions that they were looking for a way to decide the case in a narrow fashion, avoiding a ruling that could have broader implications for the nation’s tax system.
• Regardless of the outcome, the ruling could have significant implications for future tax legislation, particularly those targeting unrealized gains.