The U.S. Supreme Court upheld a 2017 tax on foreign income with a 7-2 vote, rejecting a challenge by business and anti-regulatory groups. The tax, known as the Mandatory Repatriation Tax, targets the undistributed profits of American-owned foreign businesses and is expected to generate $340 billion. The ruling, written by Justice Brett Kavanaugh, clarified that the decision does not authorize a wealth tax or address the taxation of unrealized income. The case, brought by Charles and Kathleen Moore, centered on a $15,000 tax bill from their investment in an Indian company. Critics had speculated that invalidating the tax could undermine significant parts of the tax code and preempt wealth tax proposals. Justices Clarence Thomas and Neil Gorsuch dissented, arguing the tax violates the 16th Amendment.