A lawsuit filed before the Supreme Court Thursday by a Washington state couple calling for the overturn of part of the 2017 tax law and demanding a refund of $14,729 could result in a major windfall for large companies.
It could also block a Democrat proposal to impose minimum taxes on the country’s wealthiest individuals and companies.
The court is reviewing the case that argues that people and companies must receive income before it can be taxed under the Constitution’s 16th Amendment.
After Republicans lowered tax rates for individuals and corporations in 2017, Congress imposed a one-time tax on companies that had accumulated profits that had not yet been collected, which the couple argues is unfair, since there are no guarantees that the money will ever come in.