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Supreme Court Case Could Topple Our Income Tax System – Episode 419

Adam Talks

In this episode of Adam Talks, Adam Bergman, Esq. discusses a Supreme Court case, Moore v. United States, that is currently under review, that could change how “unrealized” income is taxed.

Supreme Court Case Could Topple Our Income Tax System

On this episode of Adam Talks, tax attorney Adam Bergman discusses a key Supreme Court case that could potentially impact the income tax system. The case, Moore v. US, involves a couple who invested in a foreign company and were taxed under the mandatory repatriation tax, despite not receiving the income. Bergman explains that the case challenges the constitutionality of taxing unrealized gains, which could have significant implications for tax revenue and potential wealth tax proposals.

The 2017 tax reforms aimed to address the deferral of foreign earnings and introduced a one-time tax on accumulated foreign earnings under section 965 of the tax code. Bergman points out that the potential impact of invalidating the mandatory repatriation tax could lead to substantial lost tax revenue, affecting the ability to comply with global tax regulations and impacting wealth tax proposals.


Bergman expresses skepticism about the likelihood of the Supreme Court ruling in favor of the Moores, citing the longstanding presence of taxing unrealized gains in the US tax code. He underscores the broader implications of the case, including its potential impact on the government’s tax revenue and its ability to collect taxes from unrealized gains.

While acknowledging the fairness concerns raised by the Moores, Bergman highlights the complexity and potential consequences of challenging the taxation of unrealized gains. He also shares his personal opposition to wealth tax proposals, emphasizing the potential impact on individuals and the constitutionality of such a tax.

In conclusion, Bergman highlights the relevance and interest in discussing Supreme Court cases related to income tax, and he wishes the audience a happy holiday season. Despite facing health challenges, he expresses gratitude for the audience’s engagement and looks forward to the next podcast.


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