What's Wrong With That?
This Corporate Law Case Could Accidentally Overturn U.S. TaxesTrump made some bone headed moves as president. Examples are, choosing the wrong people to be in his cabinet, as it stands, we're just now finding out, just how many traitors he had surrounding him. In 2017 he went along with a congress which hated him and signed a bill called, the Tax Cuts and Jobs Act (TCJA) of 2017, which prior to the bill, profits returning from a foreign jurisdiction to U.S. shareholders would face the 35 percent corporate tax rate (less any relevant foreign tax credits).
This system had many downsides, including the fact that it encouraged U.S. companies to keep earnings offshore under a deferral regime to avoid the 35 percent toll charge on repatriated earnings, leading to the accumulation of more than $2 trillion in deferred foreign earnings. In the years leading up to 2017, many major U.S. corporations changed their legal residence to avoid the burden of U.S. tax, choosing instead to be incorporated elsewhere.
The long and short of this, is that the Moore's never realized any income since they had never sold any of their shares and they're claiming that this tax is unconstitutional since it's directly taxing income which have not yet being realized. This case is going to be massive. Since, if the plaintiffs lose, that's just more power being given to the government to indiscriminately tax citizens for whatever reasons even on money not yet received. It's bad enough that the government over tax us and spend our money carelessly, but now they can theorize about income that taxpayers could have earned, if they had made different decisions. For instance, what if in year one, had a person sold his/her house a certain price could have been had but the house owners declined to sell for whatever reasons then over time they sold at a lower price and the government insisted that since they could have sold their home for that initial high price in a good market, that price will be the benchmark not the actual price for the home sold, but the price that they never realized, that's the price that will be taxed. It's madness.
We want less power for the government, we want to pay the lowest taxes we can available we want to keep our wealth for ourselves and not the wastrels in government. We should all hope that the Supreme Court rules in favor of the Moore's. The IRS be damned.
This Corporate Law Case Could Accidentally Overturn U.S. TaxesMoore v. United States might wreck economic havoc.