Constitutional or Not, Wealth Taxes Are Bad Economics
A Supreme Court case about unrealized capital gains has implications for Biden’s proposed tax on the very wealthy.
The US Supreme Court heard arguments on Tuesday over a dispute over a $14,279 tax bill — and the slightly more consequential question of what counts as income under the federal tax code, a definition the Biden administration would like to expand.
The tax bill at the center of the case belongs to Charles and Kathleen Moore, from an investment they made in India almost two decades ago. Although they have never realized any gains, their investment has done well, and changes to tax law passed in 2017 required them to pay taxes on its increased value.
Allison Schrager is a senior fellow at the Manhattan Institute and a contributing editor of City Journal.
Photo by Perry Spring/iStock