NATION: Today, the US Supreme Court entered a decision in regard to the 'billionaire tax'--a tax that, by former President Donald Trump, had been regarded as an attempt at evading the payment of asset taxes imposed on the wealthy. The court determined that a previous case, Moore v US, would not prove that the asset tax was unconstitutional.
By Michelle Crawford-Sapenter
Today, in a vote of 7-2, the SCOTUS decision defeat in the plan by the former President to secure a lower tax for corporations and billionaires.
The case, Moore v US, involved a private investment in a foreign company. As a result of the fact that the Moore investment was made in a foreign company, the Trump administration charged a tax that was lower that the rate of return on the investment.
Established by the administration, a Mandatory Repatriation Tax (MRT) was charged at a rate of 10%-- a tax charged to an 11% interest earnings rate.
The MRT, which was no great benefit to the Moores, resulted in a tax payment of 3 times that of their investment earnings. The IRS tax was believed to be a violation of the Moore's constitutional rights in regard to the 16th Amendment.
The Supreme Court decided in favor of the Trump tax while considering that the contrary would result in a disproportionately lower tax payment on earned asset, whether the earnings were actually received or reinvested, and would unfairly benefit billionaires.
Upon final decision, following the Supreme Court review of the question; whether a reinvestment in a company by way of earned assets might be regarded as income, the Supreme Court determined the asset as actual income.
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