CASE AT A GLANCE Charles and Kathleen Moore invested in a foreign corporation in exchange for 11 percent of the corporation's common shares. The corporation grew year after year, but it did not distribute its earnings to the Moores. (Instead, the corporation reinvested its earnings into its own operations.) As a result, the Moores were not taxed on their earnings. This changed in 2017, when Congress passed and President Trump signed the Tax Cuts and Jobs Act. The act imposed a new, one-time tax, the Mandatory Repatriation Tax (MRT), on U.S. owners for foreign corporations based on an owner's proportional share of the corporation's earnings going back to 1986-including unrealized earnings, or those earnings that the corporation did not distribute. As a result, the Moores owed an additional $14,729 in taxes. They paid their taxes, then promptly sued to get a refund, arguing that the MRT violated the Sixteenth Amendment., Moore v. United States Docket No. 22-800 Argument Date: December 5, 2023 From: The Ninth Circuit Steven D. Schwinn University of Illinois Chicago School of Law, Chicago, IL Introduction The [...]