Transition Tax Challengers Say Court Ruling Shattered Consensus

A couple challenging the constitutionality of the transition tax on foreign earnings asked an appeals court to rehear their case.

Charles and Kathleen Moore said in a Tuesday court filing a three-judge panel of the US Court of Appeals for the Ninth Circuit shattered a previously “unbroken judicial consensus” on limits to Congress’s taxing powers. The pair asked for a rehearing by the panel or by a wider slate of Ninth Circuit judges.

In their filing, the Moores highlighted a portion of the panel’s June 7 decision stating that “realization of income is not a constitutional requirement.” The panel said ...