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Supreme Court Upholds 2017 Tax on Foreign Profits in 7-2 Moore v. US Ruling

Jun 20, 2024, 02:22 PM

The U.S. Supreme Court has upheld a tax on foreign income in Moore v. US, rejecting a challenge backed by business and anti-regulatory interests. The decision, delivered by Justice Kavanaugh in a 7-2 ruling, supports the 2017 tax on American-owned businesses' foreign profits, potentially saving companies hundreds of billions of dollars. This tax, part of President Donald Trump's tax reform package, does not violate the 16th Amendment. The ruling maintains the Mandatory Repatriation Tax, which taxes undistributed income of American-controlled foreign corporations. Justices Gorsuch and Thomas dissented. The decision avoids a potential disruption to the tax system and preserves a significant source of government revenue. In concurrences, Justices Jackson, ACB, and Alito debated the nature of taxable income.