The Supreme Court Case That Could Upend Parts of the Tax Code

The Mandatory Repatriation Tax of 2017, which taxes unrealized capital gains overseas, is under the Supreme Court’s microscope.

Illustration by The Epoch Times, Shutterstock, Public Domain

The Supreme Court on Dec. 5 will take up an important but little-noticed case about “unrealized” income that considers the constitutional limitations on federal taxing power.

The case is significant because the court could use it to strike down the Mandatory Repatriation Tax (MRT), also known as the Section 965 transition tax, which was part of the Tax Cuts and Jobs Act approved by the Republican-controlled Congress in 2017 and signed into law by then-President Donald Trump.