Supreme Court upholds a tax on foreign income over a business-backed challenge

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The justices left in place a provision of a 2017 tax law expected to generate $340 billion, mainly from the foreign subsidiaries of domestic corporations that…

The law, passed by a Republican Congress and signed by then-President Donald Trump, includes a provision that applies to companies that are owned by Americans but do their business in foreign countrieson foreign income over a challenge backed by business and anti-regulatory interests, declining their invitation to weigh in on a broader, never-enacted tax on wealth.

But the larger significance of the ruling is what it didn't do. The case attracted outsize attention because some groups allied with thecouple who brought the case argued that the challenged provision is similar to a wealth tax, which would apply not to the incomes of the very richest Americans but to their assets, like stock holdings, that now get taxed only when they are sold.

A ruling for the Moores could have called into question other provisions of the tax code and threatened losses to the U.S. Treasury of several trillion dollars, the

 

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