Supported by
Supreme Court Upholds Trump-Era Tax Provision
The dispute, which was closely watched by experts, involved a one-time foreign income tax, but many saw it as a broader challenge to pre-emptively block Congress from passing a wealth tax.
Abbie VanSickle and
Reporting from Washington
The Supreme Court on Thursday upheld a tax on foreign income that helped finance the cuts President Donald J. Trump imposed in 2017 in a case that many experts had cautioned could undercut the nation’s tax system.
Justice Brett M. Kavanaugh wrote for five justices in the 7-to-2 decision. He was joined by Chief Justice John G. Roberts Jr. and the court’s three liberals.
In a concurring opinion, Justice Amy Coney Barrett, joined by Justice Samuel A. Alito Jr., explained that although she agreed with upholding the tax, she disagreed with the broader reasoning by the majority. Justice Clarence Thomas dissented, joined by Justice Neil M. Gorsuch.
The question before the justices in the case appeared limited at first glance: Is the tax in question allowed under the Constitution, which gives Congress limited powers of taxation?
Justice Kavanaugh asserted that it was, writing, “This court’s longstanding precedents, reflected in and reinforced by Congress’s longstanding practice, establish that the answer is yes.”
He nodded to broader issues at play over the limits of federal taxation power but said those were “potential issues for another day.”
Advertisement