Supreme Court May Opt for Narrow Ruling on Foreign Earnings Tax

The US Supreme Court decided to hear a constitutional challenge to a tax on foreign earnings that could upend wide sections of US tax law, but the justices may ultimately coalesce around a more narrow ruling, tax specialists said.

The high court’s interest in Moore v. United States, which it agreed on Monday to hear, may have been driven by broad language from a lower court that implicates the legality of potential wealth taxes, several tax law scholars and practitioners said. However, striking the tax at issue down would not only eliminate a large revenue stream, but also ...