Supreme Court Refuses To Upend The Tax Code In Ruling On Unrealized Gains

he Supreme Court declined to overturn a tax policy Thursday that critics warned could have had broad implications on federal tax policy and the U.S. economy, ruling against a couple who claimed they should not have been taxed on money they invested but hadn't made a profit on.

After being taxed on an investment they had in an Indian company, couple Charles and Kathleen Moore asked the Supreme Court to overturn what’s known as the “mandatory repatriation tax” (MRT), a provision of the GOP’s 2017 tax law that imposed a one-time tax on U.S. individuals and companies who have a significant stake in foreign corporations controlled by Americans.

The court ruled 7-2 to uphold the MRT, ruling it does not exceed Congress’ authority, with Chief Justice John Roberts and Justices Brett Kavanaugh, Samuel Alito and Amy Coney Barrett joining with the court’s three liberal justices.