Supreme Court Urged to Rule Against Mandatory Repatriation Tax

The US Supreme Court should make clear that unrealized gains aren’t taxable as income, said a husband and wife Wednesday in their high-stakes constitutional challenge to a foreign earnings tax.

Upholding the foreign earnings tax under Section 965 would eliminate a core restraint on Congress’s tax powers by enabling the federal government to collect on more kinds of property, petitioners Charles and Kathleen Moore said in a reply brief.

The challenged tax collects on deferred foreign income accumulated from 1987 to 2017, targeting money that would otherwise escape US taxation during the country’s transition to a new international regime ...