The Supreme Court on Dec. 5 will take up an important but little-noticed case about "unrealized" income that considers the constitutional limitations on federal taxing power.

The case is significant because the court could use it to strike down the Mandatory Repatriation Tax (MRT), also known as the Section 965 transition tax, which was part of the Tax Cuts and Jobs Act approved by the Republican-controlled Congress in 2017 and signed into law by then-President Donald Trump.

Conservative constitutionalists say if the Supreme Court finds that the MRT violates the 16th Amendment to the Constitution, such a legal precedent could prevent Congress from enacting legislation to tax wealth.

Wealth tax proposals regularly surface in Congress. For example, Sen. Ron Wyden (D-Ore.) recently introduced a plan to tax the unrealized capital gains of high earners.

Read Full Article Here