Supreme Court Considers Case with Potential Implications for Wealth Taxes

The outcome could impact future tax legislation, particularly those targeting unrealized gains.

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.