Reports of a Wealth Tax Are Greatly Exaggerated
null Dec. 10, 2023 12:21 pm ETElizabeth Prelogar at her nomination hearing in Washington for the role of U.S. solicitor general, Sept. 14, 2021. Photo: Rod Lamkey/Zuma PressYour editorial “The Supreme Court and a Wealth Tax” (Dec. 6) correctly concludes that a wealth tax is unconstitutional. But as someone who helped write the Tax Cuts and Jobs Act as a member of House Speaker Paul Ryan’s staff, I can tell you that equating the 2017 repatriation provision with such a tax confuses wealth with income.The statutory text makes clear that the tax before the court is on foreign income previously deferred by Congress, not on asset value or appreciation, and certainly not on wealth. In fact, taxable income is limited to shareholders’ share of the corporation’s realized profits.Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8Sponsored OffersTurboTax: Extra 10% off online federal products with TurboTax service codeThe Motley Fool: Epic Bundle - 3x
Dec. 10, 2023 12:21 pm ET
Your editorial “The Supreme Court and a Wealth Tax” (Dec. 6) correctly concludes that a wealth tax is unconstitutional. But as someone who helped write the Tax Cuts and Jobs Act as a member of House Speaker Paul Ryan’s staff, I can tell you that equating the 2017 repatriation provision with such a tax confuses wealth with income.
The statutory text makes clear that the tax before the court is on foreign income previously deferred by Congress, not on asset value or appreciation, and certainly not on wealth. In fact, taxable income is limited to shareholders’ share of the corporation’s realized profits.
Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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