Supreme Court Wary of Striking Down Trump Tax Rule Targeting Overseas Income
• Supreme Court appears reluctant to strike down Trump-era tax provision targeting overseas income, concerned about impact on tax system • Case involves "mandatory repatriation tax" requiring U.S. shareholders to pay tax on proportionate share of foreign companies' earnings • Plaintiffs argue tax is unconstitutional because it taxes unrealized gains not permitted under 16th Amendment • Justices worried broad ruling for plaintiffs would undermine longstanding mechanisms for taxing foreign income • Decision could have ripple effects across tax code and eliminate trillions in tax revenue