Supreme Court Upholds Tax on Undistributed Offshore Profits

In a landmark decision, the Court maintains Congress's authority to tax unreceived income, stirring debate on future wealth taxes.

The Supreme Court ruled 7-2 to uphold the Mandatory Repatriation Tax from the 2017 tax law.
Justice Kavanaugh's majority opinion emphasized the narrow scope of the ruling, leaving broader questions unresolved.
Four justices dissented, arguing that unrealized gains should not be taxed under the Constitution.
The decision has significant implications for potential future taxes on unrealized capital gains and wealth.
Reactions from tax professionals and policy groups highlight both relief and concern over the ruling's impact on the tax code.