GOP State Officials Push High Court to Limit Congress’ Tax Power

Seventeen Republican attorneys general urged the US Supreme Court to conclude that Congress’ power to tax income doesn’t extend to unrealized gains.

The officials, led by West Virginia Attorney General Patrick Morrisey, filed an amicus brief Wednesday in the case of married couple Charles and Kathleen Moore, who argue Congress doesn’t hold the authority to tax them as shareholders of an Indian farming equipment company because the couple hadn’t realized their foreign earnings.

The Supreme Court accepted the case in June, sparking speculation from tax practitioners that a Moore victory could significantly disrupt the country’s international tax regime.

When the ...