The Supreme Court rejected a challenge to tax on foreign corporate investments, which threatens a broader initiative to enact a wealth tax on the super-rich, with Justice Brett Kavanaugh’s lead opinion using language that could make it extremely difficult for Congress to create a tax for billionaires in the future. Jordan Uhl and Brett Erlich break it down on The Damage Report.
Read more here: Supreme Court rejects challenge to tax on foreign corporate investments
“WASHINGTON — The Supreme Court on Thursday upheld a tax on foreign corporate investments in a case some worried could imperil any future attempts to enact a wealth tax on the super-rich.
The case had attracted scrutiny after conservative Justice Samuel Alito refused to recuse himself over his ties with one of the lawyers challenging the one-off tax imposed in 2017.
Alito was part of the 7-2 majority that rejected the challenge.
In the majority opinion, Justice Brett Kavanaugh said the decision was a narrow one that he indicated has no bearing on a potential wealth tax, which would involve a tax on assets, not income.
He wrote that “nothing in this opinion should be read to authorize any hypothetical congressional effort to tax both an entity and its shareholders or partners on the same undistributed income realized by the entity.””
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