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The United States Supreme Court is hearing a case that could have long-term implications for President Joe Biden’s proposed tax on the wealthy.

The Moore v. United States argument concerns whether or not a wealth tax proposed by the administration is constitutional. This comes after the court recently ruled that his $430 billion transfer of student debt was unlawful.

President Biden has been vocal in his support for taxing the wealthiest members of society, saying during his State of the Union address earlier this year: “Reward work, not just wealth. Pass my proposal for a billionaire minimum tax, because no billionaire should pay a lower tax rate than a school teacher or a firefighter.”

According to The Washington Examiner, Biden later proposed an annual 25% tax on all gains to wealth in excess of $100 million in any given year, including unrealized capital gains which are currently not taxable and would only affect those in the top 0.01% highest earners if it were passed into law.

Charles and Kathleen Moore, from Washington state, are at the center of this case; they made an investment of nearly $40,000 into an Indian company in 2005 but never received money or other payments from it despite its yearly profits.

The specifics don’t involve huge amounts of money but rather focus on taxation and how ‘income’ is defined according to U.S law; thus making this case potentially impactful when it comes to deciding whether President Biden’s proposals can go ahead as planned or be nixed completely by ruling them unconstitutional before they even get off the ground.

According to the Washington Examiner:

Under the 2017 tax reform law, they learned that they were subjected to a mandatory repatriation tax of $14,729. They paid that amount and then filed suit seeing a refund and claiming that the tax violates the constitution’s apportionment clause. The Sixteenth Amendment authorizes Congress to “lay and collect taxes on incomes, from whatever source derived, without apportionment among the several states.” That means that the federal government cannot tax stock gains, which are the source of wealth for many billionaires unless those stocks are sold.

Progressive leaders have for years railed against this state of affairs, with Sens. Bernie Sanders (I-VT), Elizabeth Warren (D-MA), and Finance Committee Chairman Ron Wyden (D-OR) supporting a tax on wealth itself rather than direct income. An appeals court ruled that the Moores could be taxed this way, saying “there is no constitutional prohibition against Congress attributing a corporation’s income pro-rata to its shareholder.” But the Supreme Court could reverse that ruling, rendering the repatriation tax and future wealth-based taxes off-limits at the federal level.

The Daily Caller added:

“The Sixteenth Amendment allows the federal government to impose income taxes without apportioning them among the states,” said Cato Institute research fellow Thomas Berry. “But courts have always limited those taxes to that word, ‘income,’ and said that word is meaningful. It doesn’t just mean whatever the government wants it to mean.”

Along with the Chamber of Commerce and Americans for Tax Reform, the Cato Institute is one of numerous groups that have submitted amicus briefs in support of the Moores. Hearings are probably going to start in October.

Scholars have long disagreed on whether unrealized capital gains should be regarded as income. Berry proposes that Biden and other Democrats instead attempt to increase conventional income taxes, which is what he is also aiming to accomplish, as well as through measures like tariffs on imported goods.

In his speeches, Biden regularly brings up the concept of a tax on the super-rich, alleging that they pay as little as 3% of their income in taxes on average, which is lower than middle-class employees.

“You can never predict for certain,” Berry said, ” but I think the justices will be concerned about setting a new precedent here and opening the door to a lot of taxes that we’ve never seen before at the federal level.”

Daniel

Daniel is a conservative syndicated opinion writer and amateur theologian. He writes about topics of politics, culture, freedom, and faith.

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  • BEGGING FOR SCRAPS AGAIN under the table of the secular masters!

    All of the Constitutional Republic’s taxes are unbiblical.

    Just think: Had the constitutional framers (like their early 1600 predecessors) established government and society upon the Bible’ immutable/unchanging moral law (including its economic and taxing statutes), there would be no graduated income tax, no property tax, no sales tax, nor any of the other sundry unbiblical taxes.

    There would, furthermore, be no Federal Reserve, nor its mistress today’s usurious fiat banking system, nor its enforcement arm the Internal Revenue Service.

    For more on how the Bible’s integral triune moral law (the Ten Commandments and their respective statutes and judgments) applies and should be implemented today as the law of the land, see free online book “Law and Kingdom: Their Relevance Under the New Covenant” at Bible versus Constitution dot org. Go to our Online Book page and scroll down to title.

    See also Chapter 25 “Amendment 16: Graduated Income Tax vs. Flat Increase Tax” of free online book “Bible Law vs. the United States Constitution: The Christian Perspective.” Click on the top entry on our Online Book page and scroll down to Chapter 25.

    Find out how much you really know about the Constitution as compared to the Bible. Take our 10-question Constitution Survey in the sidebar and receive a free copy of the 85-page “Primer” of “BL vs. USC.”

    • That was a lovely lesson from the Bible but you do remember seeing the words Shekels and gold Talents and the parable of not hiding one’s stash of Talents but growing them through one’s labor.. In order to operate a huge society, taxes must be levied. Muslim Faith considers interest to be a sin. Fiat forms of cash such as coins become too heavy to lug around. Fiat cash is fine as long as there are not Criminals in charge of the society , who in order to enrich themselves with little effort, cause deliberately, inflation of the money supply. You must realize that what Bernie and Lizzie and the other Marxists in the Congress and Senate prefer the Marxist way of Life. One Single political party and all of the Quasi rulers worshipping at the Alter of Marxism.

  • This is both unconstitutional and unwise. Do you really want to force farmers to sell their land because the land they use to provide food for all of us appreciated? Small business owners have to sell off assets and shutdown their businesses just to pay taxes on unrealized gains on assets they need to operate their business? Do you want people to have to sell their homes and sell off their retirement nest eggs, because of unrealized gains?

    These are just a few of the implications.

    Leftist will say, we’re only going after the rich. But there are no such restraints if these unrealized gains become taxable.

  • Lower tax rate? This may be so, but they are paying a thousand times more in actual dollars. I read that 50% of Americans pay zero dollars. The top 5% of taxpayers are billionaire/milionaires.

  • There’s no telling how much Money Communist Democrats have accumulated from taxpayers money when they get those huge kickbacks from foreign governments and especially from Ukraine with all those Billions those Communist Democrats graciously give Ukraine without a single kickback.
    Is China Joe already secretly a billionaire from the Millions from the CCP and stolen taxpayers money.?
    I’ll bet the Communist Democrats will be exempt from paying this Communist Bullshit tax bill.

  • The showers were with daughter Ashley and continued until she was 15 years of age. Where was Dr, Jill? This taxation of phantom profits on stocks–here today and gone tomorrow is not constitutional. The built up profit is not real until removed from the account, it is a phantom. Ex. Enron Corp and their thieving Executives. Dr Jill wanted to be First Lady and I would bet that she also suffers from the old man’s filthy mouth. It has been printed and published that the Biden Clan of Grifters have taken from China over 77 million dollars and that is not counting all of the other Countries in the world Joe Malarkey was peddling influence to. Demented old men and also women lose their inhibitions and some even are kicked out of Nursing Homes for their very unacceptable behavior. It will only get worse, like his sending Cluster bombs to Ukraine when the civilized world has agreed not to use them and then Joe Malarkey spills a National secret about how few Artillery shells the USA has in the arsenal. He is truly a TRAITOR for dollars.

  • Biden’s tax increase is unconstitutional forcing taxes on unrealized capital gains means taxing based on what you may earn, not on actual gains. Also when we all pay taxes on income the same way. Wealthier people pay more tax based on earned income anyway. Our problems stem from the high spending of federal government government. To much is wasted on free gifts abroad, on worthless endless wars and freebies to congress and senate reps.

  • I bet the 3 airhead left-wing radicals on SCOTUS vote that it is entirely Constitutional. They are COMMUNISTS who think it is the government that owns all assets and wealth, not the individuals who created them. After all, none of the 3 can tell the difference between a male and a female.

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