US Supreme Court to Decide the Congress’ Taxing Power on Americans’ Shares in Foreign Companies

The case of Charles and Kathleen Moore sought a refund of the taxes they paid and the case posed a question regarding the 16th Amendment. The US Supreme Court then announced that it will decide whether the Congress has taxing power on Americans who own shares in foreign companies.

The case of Charles and Kathleen Moore with their tax bill worth $14,729 has garnered attention after claiming that they have not received any income or dividends from their investment in an Indian company.

According to Savage, the Moores’ case lost before a federal judge and appeals court. However, the lawyers for the Moores, supported by the U.S. Chamber of Commerce and other businesses, urged the US Supreme Court to hear the appeal. As a result, the high court will hear the case of the Moores in the fall.

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US Supreme Court to Decide

According to Tarinelli, on June 26, the US Supreme Court announced that it will decide whether the U.S. Congress must require American taxpayers to pay their share of earnings from a foreign company even if there is no income or dividends received.

Reports say the 16th Amendment states that the Congress has the authority to impose and collect taxes on incomes from whichever source they may have come from. This has been understood as the U.S. government having the authority to impose taxes on wages, earnings, or stock dividends, but not on property or corporate wealth referred to as “unrealized gains”.

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