The Supreme Court ruled Thursday that a part of President Trump's 2017 'Tax Cuts and Jobs Act' that levied a tax on capital appreciation is constitutional. Justice Brett Kavanaugh wrote the majority opinion. Justices Clarence Thomas and Neil Gorsuch dissented.

The court ruled 7-2 that the mandatory repatriation tax, or MRT, is constitutional under the taxation regimes defined in Article I and the 16th Amendment. In short, the MRT imposed a one-time requirement for US citizens and companies to repatriate money held overseas. //

The Moores had earned $0 from their investment, but the value of their investment had increased because the business they invested in was successful. Because their investment was successful, that unrealized gain, which could totally disappear in a few months if things went pear-shaped, was taxed.

Why is this important?

The lodestar of the far left is "income inequality." They want everyone to be poor but them. Where their policies are defeated is by frugality and investment. //

The wealth tax's strategy is to prevent the accumulation of intergenerational wealth and penalize those who work hard, save, and invest in favor of those who consume. Every time your stock portfolio or home increases in value, a wealth tax would make that gain taxable, even if you didn't cash out. //

FreeWilledThinker
an hour ago
I just read the opinion and, even though I am a Constitutionalist and favor strict construction, I would have voted with the majority on this one. The reason why is due to the pass-through nature of the company. Every LLC in the U.S. works this way, where you get a K-1 and get taxed, even where not a cent has come into your bank account.

I think the muddy water comes from the ownership mechanism. As a shareholder, the Moore's wish to treat the pass-through as though it is not taxable on the owned company's income, but it would be were it based in the U.S. and did not pay any tax on the base income. //

Buckeye kamief
18 minutes ago
But that interest would be taxable if NOT in an IRA -- which is the crux of this. These folks were catching gains on a foreign corporation NOT in an IRA, yet because of reinvestment, they weren't paying any taxes. Compare to US tax code in existence -- if you have a stock and it's in a dividend re-investment program, which is effectively exactly what they were doing, you DO PAY TAXES on those dividends, even though you chose to re-invest. That's another reason I agree with the USSC on this one. Their Indian corporation was making money, but not calling it a "dividend", and they kept putting it back in....sorry that's basically tax evasion by US code.