The Biden administration is still having issues with the Supreme Court. The government’s plans to tax the wealthy may soon be overturned in light of the court’s recent ruling that President Joe Biden’s $430 billion transfer of student debt was unlawful.
Moore v. United States may have the most influence on Biden, despite the fact that the court will hear cases this fall involving the right to bear weapons, the jurisdiction of federal agencies, and whether the phrase “Trump too small” can be trademarked. That debate centres on Biden’s regularly expressed desire for a wealth tax and whether it could be implemented.
“Reward hard work, not simply money. During the State of the Union speech earlier this year, Biden urged lawmakers to enact his billionaire minimum tax idea. “Because no billionaire should have to pay less in taxes than a firefighter or a teacher,” the speaker argues.
“Biden subsequently proposed a 25% yearly tax on any gains to wealth over $100 million in a given year, including unrealized capital gains that are currently exempt from taxation. According to the White House, the tax would only be levied against the top 0.01% of earners. The Washington Examiner noted that even if the measure has little chance of passing in the Republican-controlled House of Representatives, it might be permanently scrapped if the high court finds that such a tax is unconstitutional.
The Moore case’s specifics, according to the site, “don’t involve a lot of money, but centre around the same issues of taxation and the definition of the word ‘income’.” Charles and Kathleen Moore, a couple from Washington state, invested about $40,000 in an Indian business.
The Cato Institute is one of the organisations that have written amicus briefs in support of the Moores, along with the Chamber of Commerce and Americans for Tax Reform. Hearings are likely to begin in October.
On the subject of whether unrealized capital gains could be considered income, scholars have long disputed.
Instead, Berry suggests that Biden and other Democrats try to raise traditional income taxes, which is what he is also attempting to do, as well as through measures like tariffs on imported goods.
Biden frequently raises the idea of a tax on the wealthy in his speeches, claiming that their average tax burden is lower than that of middle-class workers at just 3% of their income.
Berry added, “You can never predict with certainty, but I think the justices will be worried about setting a new precedent here and opening the door to a lot of taxes we’ve never seen at the federal level.”