Wealth Tax Talk

Plus, forever homes.

June 24, 2024

The Flag

Good morning and Happy Monday! Here are the Flag’s Top Five stories that should be on your radar to start the day:

  • US: Supreme Court upholds gun control law used to protect domestic violence victims (PBS News)

  • World: Putin threatens to arm North Korea, warns U.S. ally South against ‘big mistake’ (NBC News)

  • Business: Amazon’s new AI-powered Alexa might cost up to $10 per month (The Verge)

  • Technology: Apple might partner with Meta on AI (TechCrunch)

  • Sports: Protesters disrupt play at PGA’s Travelers Championship (CNN)

And of course, some good news: First-Ever California Adopt-a-Pet Day Finds Homes for 3,609 Pets, Nearly Doubles Goal.

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Right: Biden's Executive Amnesty: Illegal & Self-Defeating, Josh Hammer, American Spectator

Right: Biden's Push for Ukraine in NATO Isn't About Democracy, Adam Johnston, The Federalist

Left: Biden Is Throwing Everything at Trump, Stephen Collinson, CNN

Left: Trump vs. Biden: A Close Race Gets Even Closer, Ed Kilgore, New York Magazine

SUPREME COURT

Wealth Tax Talk

Today’s Top Story in One Sentence: On Thursday, the Supreme Court upheld the 'Mandatory Repatriation Tax' (MRT), a provision of the Tax Cuts and Jobs Act signed into law by President Trump in 2017. The MRT imposes a one-time tax on American shareholders of foreign corporations controlled by Americans.

Reporting from the Right: Supreme Court upholds Biden-backed tax on foreign corporate investments (Washington Examiner) 

Reporting from the Left: The Supreme Court upholds a tax on foreign income over a challenge backed by business interests (AP)

RIGHT-LEANING SENTIMENT

Wrong Move from SCOTUS

The Top Argument From The Right: A Supreme Court Mistake on Wealth Taxes, The Editorial Board, The Wall Street Journal: “If the current Supreme Court is so conservative, why does it keep turning out rulings against conservatives? … At issue was a provision of the 2017 tax reform that required shareholders of primarily American-controlled foreign corporations to pay a one-time tax on their retained earnings in proportion to their ownership stake. The tax targeted U.S. multinationals with foreign subsidiaries that had accumulated earnings offshore. The MRT ensnared Charles and Kathleen Moore, who had invested in a small foreign venture. Although the Moores derived no income from their shares, they were smacked with a $14,729 tax bill. They argued that the tax violated the Constitution’s requirement that direct taxes levied on property be apportioned among the states based on population. … Enter the Supreme Court… On Thursday the majority ducked the question they had said they wanted to answer when they took the case. The Justices instead ruled narrowly that under the Court’s precedents the MRT is constitutional. The Chief and Justice Kavanaugh seem to have heeded arguments that ruling for the Moores might put other tax provisions in legal jeopardy. But the opinion leaves open the door to taxing asset appreciation, including unrealized capital gains—and that’s what makes this ruling so dangerous for liberty.”

Honorable Mention #1: Taxing Net Worth Is a Terrible Idea The Editors, National Review.

Honorable Mention #2: Supreme Court affirms Trump-era tax on overseas wealth in win for IRS, Ryan King, New York Post.

LEFT-LEANING SENTIMENT

A Good Ruling from SCOTUS

The Top Argument From The Left: Supreme Court Makes a Good Ruling for Once on Taxing the Rich, Edith Olmsted, The New Republic: “The U.S. Supreme Court just shot down a case that conservative lawyers hoped would kill any future proposals of a wealth tax. … The [MRT] law massively overhauled the federal tax code, but this particular case was about a one-time tax called the Mandatory Repatriation Tax, or MRT, which targeted people who owned more than 10 percent of a foreign company. The MRT made a lot of rich people mad because companies will often avoid actually paying out dividends to their shareholders, in an attempt to shield them from being taxed. … Kavanaugh insisted that the ruling did not resolve questions surrounding a tax based on holdings, wealth, or net worth. ‘Those are potential issues for another day, and we do not address or resolve any of those issues here,’ he wrote. With this ruling, the court has left a door open for congressional Democrats to install a tax on the nation’s highest earners, a plan that stands in stark contrast to Trump’s efforts to grant tax cuts to the rich and install trickle-down economic policy. Ironically (and shortsightedly), his platform has sent billionaires flocking to support the former president, a decision that may ultimately doom them.”

Honorable Mention #2: Democrats’ Dream of a Wealth Tax Is Alive. For Now. Jim Tankersley, The New York Times.

FLAG THIS

Americans and a Wealth Tax

A Hill-HarrisX survey conducted in 2019 found that 74% of registered voters support an annual 2% tax on people with assets over $50 million and a 3% tax on those with assets exceeding $1 billion. (The Hill)

A Reuters/Ipsos poll conducted in 2020 revealed that 64% of U.S. adults agree that the very rich should contribute an extra share of their total wealth each year to support public programs. (Newsweek)

However, research from Stanford University revealed that opinions can shift based on economic consequences. If a wealth tax led to economic decline or high unemployment, 53% would oppose it, while only 26% would support it. (Stanford Business)

Do you support a wealth tax on individuals possessing more than $50 million in assets?

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WATERCOOLER

Roswell, Favorite Fruit Waste, Culinary Nomer

On This Day in 1997, U.S. Air Force officials released a 231-page report dismissing long-standing claims of an alien spacecraft crash in Roswell, New Mexico, almost exactly 50 years earlier.

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You’ve probably heard from a number of “crypto gurus” about how we’re at the cusp of what could be the greatest crypto bull run in history.

With quotes like that flying around, we’re not surprised that’s the case. But you see… You might not actually want to buy Bitcoin this time around.

That’s because there’s a better way to take advantage of this new bull market… One market expert calls it Crypto’s Hidden Gem

And it’s a new way that has given folks the chance to see bigger and faster moves than the traditional way of buying Bitcoin…

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