{"id":6652,"date":"2018-10-29T20:23:06","date_gmt":"2018-10-29T20:23:06","guid":{"rendered":"http:\/\/13.40.31.108\/?p=6652"},"modified":"2018-10-29T20:23:06","modified_gmt":"2018-10-29T20:23:06","slug":"the-section-965-transition-tax-is-unconstitutional","status":"publish","type":"post","link":"https:\/\/ustaxconsultants.es\/es\/the-section-965-transition-tax-is-unconstitutional\/","title":{"rendered":"The Section 965 \u00abtransition tax\u00bb is unconstitutional"},"content":{"rendered":"<div>\n<p>According to the paper published by the <a href=\"https:\/\/bit.ly\/2yNtk5h\">Yale Journal on Regulation Bulleting<\/a> , Vol. 36, 2018 by SeanP McElroy, the mandatory \u00abrepatriation tax is unconstitutional.<\/p>\n<p>In late 2017, Congress passed the first major tax reform in over three decades. This Essay considers the constitutional concerns raised by Section 965 (the \u201cMandatory Repatriation Tax\u201d), a central provision of the new tax law that imposes a one-time tax on U.S.-based multinationals\u2019 accumulated foreign earnings.<\/p>\n<p>First, this Essay argues that Congress lacks the power to directly tax wealth without apportionment among the states. Congress\u2019s power to tax is expressly granted, and constrained, by the Constitution. While the passage of the Sixteenth Amendment mooted many constitutional questions by expressly allowing Congress to tax income from whatever source derived, this Essay argues the Mandatory Repatriation Tax is a wealth tax, rather than an income tax, and is therefore unconstitutional.<\/p>\n<p>Second, even if the Mandatory Repatriation Tax is found to be an income tax (or, alternatively, an excise tax), the tax is nevertheless unconstitutionally retroactive. While the Supreme Court has generally upheld retroactive taxes at both the state and federal level over the past few decades, the unprecedented retroactivity of the Mandatory Repatriation Tax \u2014 and its potential for taxing earnings nearly three decades after the fact \u2014 raises unprecedented Fifth Amendment due process concerns.<\/p>\n<p>If you need any further explanation, please do not hesitate to contact us: <a href=\"mailto:info@ustaxconsultants.es\">info@ustaxconsultants.es<\/a> +34 913 623 701<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>According to the paper published by the Yale Journal on Regulation Bulleting , Vol. 36, 2018 by SeanP McElroy, the mandatory \u00abrepatriation tax is unconstitutional. In late 2017, Congress passed the first major tax reform in over three decades. This Essay considers the constitutional concerns raised by Section 965 (the \u201cMandatory Repatriation Tax\u201d), a central [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":6653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[30,23,24],"tags":[35,20,39],"class_list":["post-6652","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-grid-2-cols-side-left-gallery-pc","category-irs","category-us-tax-return-1040-1040nr","tag-35","tag-irs-2","tag-us-federal-income-tax-return"],"acf":[],"_links":{"self":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/6652","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/comments?post=6652"}],"version-history":[{"count":0,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/6652\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media\/6653"}],"wp:attachment":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media?parent=6652"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/categories?post=6652"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/tags?post=6652"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}