The Supreme Court issued a much-awaited ruling in a tax case, holding that the mandatory repatriation tax passed as part of the 2017 Trump tax cuts did not exceed Congress’ constitutional authority.
The court’s holding was narrow, and significant in large part for issues it did not address, leaving open questions related to the constitutionality of alternative taxing schemes—such as a so-called wealth tax—for another day.
The 7-2 opinion in Moore v. United States, authored by Justice Brett Kavanaugh, noted that Article I of the Constitution affords Congress broad powers to lay and collect taxes, both direct and indirect taxes, the latter of which are imposed on activities or transactions.
Indirect taxes are permitted without apportionment, but must be “uniform throughout the United States.” The court’s majority held that the MRT taxes income realized…
