The plaintiffs in Moore, however, claim that it is unconstitutional for the federal government to tax profits before those profits are realized. This case is widely viewed as a stalking horse against Warren-style wealth taxes, as it would be impossible to tax wealth (as opposed to merely taxing the income generated by wealth) if the Constitution were to prohibit taxation of unrealized gains on the very assets that Warren-style proposals target. But a sweeping decision in favor of these plaintiffs could also endanger numerous other, existing taxes — forcing the entire government to scramble as hundreds of billions of dollars' worth of anticipated tax revenue is suddenly declared unconstitutional…
Before the Trump tax bill became law, the United States attempted to tax US corporations' overseas income. Under the old regime, however, corporations could defer taxation of their foreign profits indefinitely by creating a foreign subsidiary. Income earned by these foreign subsidiaries would not be taxed until it was repatriated into the United States, giving companies a strong incentive to hoard money overseas and away from US tax collectors.
By 2015, US corporations were keeping an estimated $2.6 trillion overseas to prevent this money from being taxed in the United States…
No comments:
Post a Comment