$340 Billion Expected – Supreme Court Upholds Tax on Foreign Investments from Trump’s 2017 Law

The Supreme Court upheld a tax on foreign investments from Trump’s 2017 tax law.

Supreme Court Upholds Tax on Foreign Investments from Trump’s 2017 Tax Cuts

The Supreme Court upheld a tax on foreign investments from Donald Trump’s 2017 tax cuts in a 7-2 decision rejecting a challenge supported by business groups. Justice Brett Kavanaugh writing for the majority argued that striking down the tax could lead to unconstitutional gaps in tax law and significant revenue losses for the government. The case involved Charles and Kathleen Moore disputing a tax bill related to investments in an Indian company, despite Charles Moore’s involvement as a director. Justices Clarence Thomas and Neil Gorsuch dissented citing violations of the 16th Amendment, according to the report of New York Post.

READ ALSO: Hijab Heroes: Muslim Women’s Class-Action Victory Against NYPD Brings Justice And Compensation To Thousands

(photo: MSN)

Supreme Court Upholds Foreign Investment Tax from Trump’s 2017 Law

The tax targeted U.S.-owned overseas businesses and was expected to generate about $340 billion over a decade. Kavanaugh clarified that while the ruling supported the tax in question, it did not approve broader efforts to tax both entities and shareholders on undistributed income. The Competitive Enterprise Institute representing the Moores argued the tax unfairly burdened shareholders. Kavanaugh stressed the court’s limited role in tax policy debates leaving broader constitutional questions unresolved.

In summary, the Supreme Court upheld a tax on foreign investments under Trump’s tax law despite dissent arguing constitutional issues. The ruling addressed specific tax legality but left broader tax policy questions open for future deliberation and legislative action.

READ ALSO: 279,000+ Individuals Impacted By CGM Data Breach: $1.5M Settlement Offers Compensation And Protection!