Read Your Survival Guy’s Digital Dollars: A Warning Where You’re the Prey, and you can see where big government and big states are headed. That’s why I want you to look for your peace of mind in a Super State.
You’ve read lately about the Supreme Court case Moore vs. U.S. in a couple of posts here on Your Survival Guy.
The Wall Street Journal editorial board explains why the case is so important:
The government argued in its brief with the Court that the Sixteenth Amendment doesn’t require that income be realized for it to be taxed. But the SG shifted during oral arguments to arguing that the MRT is merely a tax on “paradigmatic realized income at the entity-level, and this functions just like the pass-through taxes on partnerships.”
In other words, as long as income is realized by someone at some time, someone else can be made to pay tax on it. But as the Moores’ attorney Andrew Grossman asked, what’s to stop the government from taxing shareholders of ExxonMobil on all of the company’s reinvested earnings going back many years, even during years they didn’t own shares?
Or as Justice Samuel Alito asked: “What about the appreciation of holdings in securities by millions and millions of Americans, holdings in mutual funds over a period of time without selling the shares in those mutual funds?” Ms. Prelogar replied: “I think if Congress actually enacted a tax like that, and it never has, that we would likely defend it as an income tax.”
There you have it. The Biden Administration believes the Sixteenth Amendment lets Congress tax the unrealized appreciation of assets. As Justice Neil Gorsuch noted, when the Supreme Court opens a door, “Congress tends to walk through it.” The Justices should close the wealth-tax door.
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