Supreme Court upholds Trump-era offshore tax rule affecting federal budget and tax policy options

The U.S. Supreme Court ruled against a couple challenging a Trump-era tax provision, upholding the tax and handing the government a victory. The couple, Charles and Kathleen Moore, were required to pay a one-time $15,000 tax on an investment in India that grew significantly in value. They argued that since they received no payments or dividends, there was no income to be taxed, and that the tax violated the 16th Amendment. The court's decision had significant implications for the federal budget and tax policy, potentially affecting trillions of dollars. The tax provision aimed to address offshore profits and prevent tax dodges by the wealthy. Despite opposition from conservative groups, the court upheld the tax in a 7-2 vote. The case had broader implications for tax policy and congressional options. Additionally, the text mentions various political developments, such as abortion access becoming a central issue in the 2024 Senate elections and tensions between the Biden administration and Israeli leader Netanyahu.