Springfield – Attorney General Kwame Raoul, with 16 attorneys general, submitted an amicus brief to the U.S. Supreme Court in support of the federal government in Moore v. United States, which addresses the validity of the Mandatory Repatriation Tax (MRT). In the brief, Raoul and the coalition argue that U.S. Court of Appeals for the 9th Circuit correctly upheld the validity of the MRT, and that overturning that decision could have far-reaching economic consequences at the state and federal levels.
Congress enacted the MRT in 2017 as part of a broad bill that, among other things, cut or eliminated taxes that multinational corporations and other international investors pay on income from their overseas holdings. The MRT offsets this massive tax cut and promotes fundamental fairness by ensuring that hundreds of billions of dollars in cash held by corporations overseas do not escape taxation forever.
“I am urging the Supreme Court to uphold the validity of the MRT because it is essential to maintaining a strong tax base for both federal and state economies,” Raoul said. “I will continue to advocate for the MRT and similar taxes to ensure a fair and efficient tax system.”
Raoul and the coalition urge the Supreme Court to consider the broader implications of its ruling in order to avoid potential economic turmoil. A decision against the MRT could not only deplete essential tax revenue, but also cause a resurgence of tax avoidance schemes, impacting everyone from individual residents to large institutions.
The brief explains the MRT and similar taxes play an essential role in U.S. tax law by discouraging tax shelters that corporations use to avoid paying taxes. Many states tax mandatory repatriation income at the state level, and all states rely on the federal government to maintain a rational, fair and efficient tax system. Striking down the MRT could cause a ripple effect across state economies, creating a vacuum of uncertainty and turmoil in the country's financial landscape.
Attorney General Raoul is joined in submitting the amicus brief by the attorneys general of Arizona, California, Colorado, Connecticut, the District of Columbia, Hawaii, Maine, Maryland, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Vermont and Washington.