Supreme Court hears arguments in dispute that could upend U.S. tax system – By A.L. Lee (UPI) / Dec 5, 2023
Couple paid thousands in taxes for investments they never cashed in
Dec. 5 (UPI) — The U.S. Supreme Court will hear arguments in a case that could reshape the U.S. tax system in a major challenge to the 16th Amendment that would impact the federal budget and potentially disrupt legislative efforts to tax wealthy Americans.
The court case, Moore vs. United States, is making waves from Washington to Wall Street as a ruling could hold enormous implications for longstanding U.S. tax laws and potentially influence the scope of Congress’ taxing powers under the Constitution.
The dispute before the justices Tuesday originated in 2006, when Charles and Kathleen Moore made a $40,000 investment to help establish the India-based company KisanKraft Machine Tools, which is involved in providing equipment to farmers across India. In return for their investment, the Moores obtained a 13% stake in the company.
Every year since, the company’s revenues have grown, but rather than give that bonus money back to shareholders, the owners elected to use it to expand the global footprint of the business. As a result, the Moores never received any payouts, according to documents filed with the high court.
