The Challenge to the Mandatory Repatriation Tax

The podcast discusses an amicus brief written by Richard Epstein and John Yu regarding a tax change in the Tax Cuts and Jobs Act. The amicus brief defends the owners of a foreign corporation who had to pay taxes on their foreign ownership. The case raises questions about the mandatory repatriation tax and its implications. Epstein highlights the importance of the realization requirement in the tax system and argues against taxing unrealized income. He warns that changing this requirement could lead to increased taxation and complexity.