by Mitch Kokai
Senior Political Analyst, John Locke Foundation
The Supreme Court isn’t finished causing problems for the Biden administration.
After dealing the administration a major blow by deeming President Joe Biden’s $430 billion student debt transfer illegal, the court could soon upset his plans to tax the rich.
The court will hear cases this fall pertaining to gun rights, federal agency power, and whether “Trump too small” can be trademarked, but the most consequential case for Biden may be Moore v. United States. That case has to do with whether Biden can levy a wealth tax, something he’s prominently and repeatedly called for.
“Reward work, not just wealth. Pass my proposal for a billionaire minimum tax,” Biden said during the State of the Union address. “Because no billionaire should pay a lower tax rate than a school teacher or a firefighter.”
Biden later proposed a 25% annual tax on all gains to wealth in excess of $100 million in a given year, including unrealized capital gains which aren’t currently taxable. The White House says that the tax would only apply to the top 0.01% of the highest earners.
While the proposal faces long odds with a Republican-controlled House of Representatives, it could be nixed permanently if the high court rules such a tax is unconstitutional.
The specifics of the Moore case don’t involve huge amounts of money, but center around the same issues of taxation and the definition of the word “income.”
Charles and Kathleen Moore, a Washington state-based couple, made a nearly $40,000 investment into an Indian company in 2005, and never received any money or other payments from the company even though it made a profit every year.