The Moore @USTransitionTax Case: A Short Term Loss For The Moores, But A Long Run Win For All

June 20, 2024 - Participants include:

 

Dr. Laura Snyder - @TAPInternation

John Richardson - @Expatriationlaw

The purpose of SEAT has been and continues to be to conduct research (including the SEAT survey), prepare position papers, make submissions by SEAT to various governments, facilitate advocacy by individuals impacted, file amicus briefs and provide a centre for educating interested parties about the U.S. extra-territorial tax regime. (SEAT's work may be found on the SEAT website.)

SEAT believes that the problems caused to Americans abroad by the U.S. extraterritorial tax regime can be ended ONLY by severing citizenship from tax residency. We encourage the United States to join the rest of the world by taxing individuals on the basis of residence and source and NOT based on the citizenship of an individual.

Part of SEAT's work has been break our research into specific issues and categories. These categories are expressed as "SEAT Working Papers". In order to make the "SEAT Working Papers" available in podcast form, SEAT co-founders Karen Alpert, Laura Snyder and John Richardson are developing a series of podcasts - featuring interactive discussion - where we distill the "working paper" into conversational format. It is our hope that these podcasts will make SEAT's content available to a larger group of people.

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Today on June 20, 2024 the Supreme Court of the United States released its decision in the Moore Transition Tax case. The court ruled 7 to 2 against with Moores with Justices Thomas and Gorsuch dissenting.

In this podcast Laura Snyder and I discuss our impressions (it's only been out for a few hours) of the Court's decision.

Individuals were the owners of far more CFCs than multinationals. A large percentage of CFCs owned by individuals are owned by Americans abroad. Individuals were not mentioned in the decision.

Therefore, it is clear that those Americans abroad who are considering renunciation should renounce as soon as reasonably possible!! It is simply too risky to retain your U.S. citizenship and live outside the United States.

In spite of the seven to two ruling against the Moores, I regard the decision as:

A short run loss for the Moores and a possible long run win for taxpayers. My reasoning is detailed in the following tweets ...

 

https://x.com/ExpatriationLaw/status/1803808588797780417

 

https://x.com/ExpatriationLaw/status/1803794413639926061

 

Generally four of the nine justices suggested that taxation may be subject to certain constitutional - due process - limitations. The remaining five  justices did NOT discuss any limitations on taxation.

 

The full decision is may be read here:

 

https://www.supremecourt.gov/opinions/23pdf/22-800_jg6o.pdf

 

Previous SEAT podcasts about Moore include:

https://prep.podbean.com/e/december-5-2023-debriefing-the-moore-case-what-happened-at-the-hearing/

 

https://prep.podbean.com/e/moore-v-united-states-december-5-2023-the-argument-before-the-court/