Supreme Court Upholds US Tax on Foreign Business Income (2)

The US Supreme Court upheld a 2017 tax on American-owned businesses’ foreign profits, rejecting an appeal that could have saved companies hundreds of billions of dollars.

Voting 7-2, the justices said Congress has the constitutional power to tax people and companies on their share of undistributed corporate income, at least when it comes to so-called pass-through businesses. Writing for the court, Justice Brett Kavanaugh said the disputed tax wasn’t fundamentally different from other levies imposed by Congress over the years.

The case was being closely watched because of its potential implications for Democratic proposals to impose a wealth tax. Kavanaugh ...