The Supreme Court agreed on June 26 to consider a challenge to an arguably unconstitutional wealth tax that was levied on capital gains a Washington state couple never received.
The Mandatory Repatriation Tax, also known as the Section 965 Transition Tax, was part of the Tax Cuts and Jobs Act passed by the then-Republican-controlled Congress in 2017. Then-President Donald Trump signed the law on Dec. 22 of that year.
The provision taxes U.S. citizens on certain accumulated foreign earnings of foreign corporations going back 30 years, even if the earnings have not been distributed. This means taxing people on income they never received and never owned, according to a summary by the Competitive Enterprise Institute (CEI), which is providing legal representation to the couple….