Supreme Court hears tax case that drew calls for Justice Alito’s recusal
The Supreme Court is weighing a tax case, Moore v. U.S., that questions whether people can be forced to pay taxes on stakes in foreign-owned companies even if they have not derived any income from them. The case came under scrutiny as Justice Samuel Alito rejected claims to recuse himself due to his connection with one of the lawyers involved, David Rivkin. The case could have significant implications, potentially leading to more challenges to other tax provisions and potentially threatening any future effort to enact a “wealth tax.” The case addresses a provision of the 2017 Tax Cuts and Jobs Act that imposed a one-off tax on shares held in foreign companies, making it a rare occasion for the Supreme Court to interpret the Constitution’s 16th Amendment, which outlines Congress’ power to order the collection of income taxes.
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