Supreme Court Rejects , Challenge to Tax Law on, Foreign Investments.<br />On June 20, the Supreme Court upheld a tax on foreign <br />corporate investments enacted by a Republican-controlled <br />Congress under former President Donald Trump.<br />On June 20, the Supreme Court upheld a tax on foreign <br />corporate investments enacted by a Republican-controlled <br />Congress under former President Donald Trump.<br />NBC reports that the case had attracted scrutiny when <br />conservative Justice Samuel Alito refused to recuse <br />himself despite ties with one of the challenging lawyers.<br />The case revolved around whether an individual can be <br />forced to pay taxes on investments in foreign-owned <br />companies regardless of if they were a source of income.<br />The case revolved around whether an individual can be <br />forced to pay taxes on investments in foreign-owned <br />companies regardless of if they were a source of income.<br />According to the 16th Amendment <br />of the Constitution, Congress has the <br />power to "collect taxes on incomes.".<br />In the case, Charles and Kathleen Moore claim they were <br />unfairly taxed on their $40,000 investment in an <br />India-based company called KisanKraft Machine Tools. .<br />While the company made a profit, the Moores <br />claim that they received no dividends and that<br />the money was reinvested in the business.<br />As a result, the Moores did not pay taxes between <br />2006 and 2017 on what the U.S. government later <br />defined as income from their investment. .<br />Due to a provision that was part of a major tax law <br />enacted by former President Donald Trump in 2017, <br />the Moores paid $15,000 in additional taxes.<br />They later sought a refund for that payment, <br />arguing that they had been unlawfully taxed <br />based on an increase in the value of a capital <br />investment not qualifying as income.<br />The couple's challenge was rejected <br />by the Supreme Court 7-2
