Share this @internewscast.com

WASHINGTON — The Supreme Court on Tuesday weighs a tax case that attracted scrutiny after Justice Samuel Alito rejected claims that he should not participate in it because of his ties with one of the lawyers involved.

The case, Moore v. U.S., concerns a novel constitutional question about whether people can be forced to pay taxes on stakes in foreign-owned companies even if they have not derived any income from them.

David Rivkin, one of the lawyers involved in the case against the federal government, interviewed Alito in two articles published in The Wall Street Journal that addressed recent claims of ethics violations on the court and the power of Congress to legislate on the issue.

After it faced pressure for months over alleged ethics lapses, the court last month announced a new code of conduct that immediately attracted criticism because the justices are left to enforce it themselves.

In September, Alito issued a statement saying there was “no valid reason” for him to step aside in the tax case.

Rivkin represents Washington state-based Charles and Kathleen Moore, who invested in an India-based company. He is not arguing the case Tuesday.

It is a rare occasion for the Supreme Court to delve into the meaning of the Constitution’s 16th Amendment, which outlines Congress’ power to order the collection of income taxes.

Some tax experts say the case could have broad ramifications, leading to more challenges to other tax provisions and potentially threatening any future effort to enact a “wealth tax.”

The case focuses on a provision of the 2017 Tax Cuts and Jobs Act that imposed a one-off tax on shares held in foreign companies. It stated that people could not defer paying taxes on ownership stakes in such companies.

The Moores say that in 2005, they invested $40,000 in a company called KisanKraft Machine Tools. Although the company was profitable, they say they did not receive dividends, with the money instead being reinvested in the business. Because of that, the Moores did not pay taxes on what the U.S. government defined as income from the company from 2006 to 2017.

After the new law was enacted, the Moores ended up paying almost $15,000 in additional taxes, which they then sought a refund for. They argue that the tax was unlawful on the grounds that an increase in the value of a capital investment does not constitute income.

A federal judge and the San Francisco-based 9th U.S. Circuit Court of Appeals both ruled in favor of the government, prompting the Moores to seek Supreme Court review.

Share this @internewscast.com
You May Also Like
DOJ sues LA sheriff’s office in its first-ever gun-rights lawsuit over carry delays

LA Sheriff’s Office Faces DOJ’s First Gun-Rights Lawsuit Over Concealed Carry Delays

On Tuesday, the Justice Department initiated a lawsuit against the Los Angeles…
ICE in Chicago protest: Broadview, Illinois leaders to address what they call 'unprovoked' use of chemical agents at ICE facility

Chicago ICE Protest: Broadview, Illinois Leaders Condemn Alleged ‘Unprovoked’ Use of Chemical Agents at ICE Facility

CHICAGO (WLS) — Officials from the village of Broadview are scheduled to…
Government shutdown begins as lawmakers fail to reach deal to extend funding

Government Shutdown Initiated After Lawmakers Fail to Secure Funding Agreement

Senate Majority Leader John Thune and Minority Leader Chuck Schumer debate government…
Through the roof: How much does it cost to live in Glynn County?

Skyrocketing Prices: What Are the Living Expenses in Glynn County?

The median home price in some areas has doubled in the last…
UNC Suspends Redneck Revolt Professor

UNC Places Redneck Revolt Professor on Suspension

UNC Chapel Hill professor Dwayne Dixon, a self-identified member of the far-left…
Anti-Defamation League retires glossary of extremist groups after backlash for including Charlie Kirk's TPUSA

ADL withdraws extremist groups glossary following criticism for listing Charlie Kirk’s TPUSA

The Anti-Defamation League (ADL) recently decided to pull its entire “Glossary of…
A Right Delayed Is a Right Denied: DOJ Suing LA County for Slow-Walking CCW Apps

Justice Delayed Is Justice Denied: DOJ Takes Legal Action Against LA County for Slow Processing of Concealed Carry Permit Applications

The Trump administration’s Justice Department is taking legal action against the Los…
Marion County man charged with creating CSAM using AI

Marion County Resident Accused of Producing CSAM with Artificial Intelligence

Police say that Lucius Martin was arrested during a traffic stop, where…
Court disqualifies Trump-appointed US attorney in Nevada from overseeing multiple criminal cases

Nevada Court Removes Trump-Appointed US Attorney from Handling Several Criminal Cases

In Las Vegas, a judge has disqualified the Trump-appointed U.S. attorney in…
Teen Vogue Summit 2025 brings music, media, and powerful mentorship to young creators

The Teen Vogue Summit 2025 combines music, media, and inspiring mentorship for young creatives.

The 2025 Teen Vogue Summit took place in Los Angeles, where it…
Man executed in Florida for 1990 killings as state leads nation in executions this year

Florida Carries Out Execution for 1990 Murders, Leading the Nation in 2023 Execution Numbers

A man condemned for a double murder in 1990 met his end…
Man in wheelchair killed in crash on Jacksonville's Southside, JSO says

Fatal Accident Involving Wheelchair-Bound Man on Jacksonville’s Southside, According to JSO

A man in a wheelchair was killed in a traffic crash on…