Corporate Accountability

RELEASE: In narrow ruling, Supreme Court rejects baseless effort to shield corporate-derived income from taxation

WASHINGTON, DC – Following this morning’s decision at the Supreme Court in Moore v. United States, a case in which the Court considered a challenge to Congress’s power to tax income under the Sixteenth Amendment, Constitutional Accountability Center Deputy Chief Counsel Brian Frazelle issued the following reaction:

The Sixteenth Amendment overruled a notorious Supreme Court decision that wrongly prevented the government from taxing investment-derived income. Today, the Court avoided repeating its earlier mistake.

The challengers to the tax at issue made aggressive arguments that, if accepted, would have hindered the taxation of income gained through ownership of corporations. In a narrow ruling, the Court rejected that challenge.

As Justice Ketanji Brown Jackson noted in her concurrence, citing the amicus brief we filed on behalf of law professors John R. Brooks and David Gamage, the artificial limit on Congress’s taxing power urged by the challengers “appears nowhere in the text of the Sixteenth Amendment” and runs contrary to the Amendment’s history.

##

Resources:

Case page in Moore v. United States: https://www.theusconstitution.org/litigation/moore-v-united-states/

##

Constitutional Accountability Center is a nonpartisan think tank and public interest law firm dedicated to fulfilling the progressive promise of the Constitution’s text, history, and values. Visit CAC’s website at www.theusconstitution.org.

More from Corporate Accountability

Corporate Accountability
U.S. Court of Appeals for the Fifth Circuit

Burgess v. Whang

In Burgess v. Whang, the Fifth Circuit is considering a challenge to the Federal Deposit Insurance Corporation’s authority to issue penalties and other supervisory orders. 
Corporate Accountability
October 23, 2024

The Constitution Doesn’t Entitle Drug Manufacturers to a Sweetheart Deal

Washington
Big Pharma is in federal appeals court making the absurd argument that Medicare shouldn’t be...
By: Nina Henry
Corporate Accountability
October 4, 2024

An Oil Giant Railroads Its SCOTUS Connection To Gut Environmental Law

The Lever
A fossil fuel giant with deep ties to Supreme Court Justice Neil Gorsuch, along with...
Corporate Accountability
July 2, 2024

QUICK TAKE: Corporate Interests at the Supreme Court, 2023-2024 Term

Conservative supermajority discards precedent, shifts power to judges, and hobbles agency efforts to enforce the...
By: Brian R. Frazelle
Corporate Accountability
June 24, 2024

The Supreme Court’s War on Working People Just Got a Little Worse

Balls and Strikes
The decision in Starbucks Corporation v. McKinney is part of a long tradition of the Supreme Court...
Corporate Accountability
U.S. Court of Appeals for the Fifth Circuit

Intuit, Inc. v. Federal Trade Commission

In Intuit Inc v. Federal Trade Commission, the United States Court of Appeals for the Fifth Circuit is considering whether the FTC’s authority to issue cease-and-desist orders against false and misleading advertising is constitutional.