Supreme Court Upholds US Tax on Foreign Business Income
- Kavanaugh says court doesn’t need to address wealth tax
- Government has estimated tax would bring in $340 billion
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The US Supreme Court upheld a 2017 tax on American-owned businesses’ foreign profits, rejecting an appeal that could have saved companies hundreds of billions of dollars.
Voting 7-2, the justices said Congress has the constitutional power to tax people and companies on their share of undistributed corporate income, at least when it comes to so-called pass-through businesses. Writing for the court, Justice Brett Kavanaugh said the disputed tax wasn’t fundamentally different from other levies imposed by Congress over the years.