The Supreme Court of the United States always sits in the crosshairs of historic decisions, and rulings, as the nation's highest legal authority. Once again, fate is up to the nine justices sitting on the bench, as one of the most pivotal tax cases ever comes to the forefront.
The Case of Moore v. United States concerns constitutionality surrounding what is simply known as a 'wealth tax.' Grover Norquist from Americans for Tax Reforms says this would push things to a whole new level of intrustion, and the economy to the brink of disaster.
"It would tax not just income when you earn it, not just earnings when you save it, and invest it...they want to tax you on unrealized income," he says. "For example, your house is worth $100,000, but it worth $200,000 years later thanks to inflation...they count that additional $100,000 as income. Inflation does not matter."
That would make it where your income is being taxed for a third or fourth time, on top of what the government already rips away from you.
It would not just apply to what you make here either. Previously, foreign business profits went untaxed until they returned to shareholders in America. But, the 2017 Tax Cut and Jobs Act (TCJA) imposed the mandatory repatriation tax on any pre-2018 profits stored abroad.
The Supreme Court has beat the drum since 1920 that income must be 'clearly realized' to be taxable. Norquist expects the same thing again.
"The courts I believe will decide you can only tax income...and a case that does that should move us closer to a consumption tax," he says. "You would tax income when it is consumed, not when it is sitting there invested."
Should the courts decide against the idea, then it may open up a little simpler sledding for the U.S. tax code.
"This could be something...that moves us closer to a consumption tax, where we tax income that you take and spend, but does not tax income you save and invest...which is good for the economy," he says.
Most feel that the Justices will end up siding with the government, but not Norquist.
"This desire to tax your income for a third r fourth time shoudl eb stymied by the idea that the Constitution does not allow it," he says.
The entire idea, while frustrating to ponder, is nothing surprising under the Democrat-run government. It is just another charge from them to try and be even more intrusive and powerful in your life.
"The power to tax is the power to destroy...the power to destroy is the power to get campaign contributions," he says. "The Left has no limits."
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