This week, the Supreme Court made a significant decision in Moore v. United States, ruling narrowly in favor of the Moores but setting a precedent that may not apply to future cases.
An important takeaway from Moore v. United States is the belief held by both Justice Ketanji Brown Jackson, a Biden appointee, and the Biden administration that Congress has broad authority to tax unrealized capital gains or implement a wealth tax based on net worth. Justice Jackson’s opinion suggests that questions regarding the Tax Clause of Article I, Section 8, or the scope of the 16th Amendment are political in nature and not subject to judicial review.
This interpretation implies that the government could potentially tax the appreciation of assets such as real estate, retirement accounts, or stocks without requiring a sale of those assets. This stance, as articulated by Justice Jackson, represents a departure from previous Supreme Court Justices’ positions on the Taxation Clause and the Sixteenth Amendment.
It is crucial for former President Trump to address this issue with President Biden in their upcoming debate. President Biden’s suggestion that the winner of the 2024 presidential election will appoint two new Supreme Court Justices, potentially aligning with Justice Jackson’s views, is a cause for concern.
