Tax Code Chaos Averted in Top Court Ruling but Worry Lingers (1)

The US Supreme Court ruling Thursday on a key foreign-income tax case allays the most dire fears that it could upset other parts of the tax code, but questions remain about what it may signal for a potential future wealth tax and other provisions.

The court’s 7-2 ruling in Moore v. United States upheld the constitutionality of the mandatory repatriation tax, also known as the transition tax. The case was nominally over a tax bill of only $14,729, but many tax-world observers had feared that a high-court ruling throwing out the tax would not only trigger billions of dollars of ...