Supreme Court upholds Trump-era tax on foreign earnings

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The court ruled 7-2 that the so-called mandatory repatriation tax is constitutional under Article I and the 16th Amendment.

Washington — The Supreme Court on Thursday left intact an obscure tax enacted as part of Republicans' sweeping 2017 reform package that targets U.S. taxpayers with shares of certain foreign corporations. Justice Brett Kavanaugh wrote the majority opinion.

Though KisanKraft reinvested its earnings in the years after its founding, rather than distributing dividends to shareholders, the tax still applied to the Moores.The Moores paid, but filed a lawsuit against the federal government to obtain a refund and challenge the constitutionality of the mandatory repatriation tax.

 

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