Recently, the U.S. Supreme Court has been in the spotlight. The overturning of Roe v. Wade last year has raised awareness of changes in the makeup of the court.
Additionally, controversies surrounding court ethics and justices failing to disclose luxury gifts have been in the news. (Some recent surveys suggest that more than half of Americans disapprove of how the Supreme Court handles its job.)
U.S. Supreme Court justices consider several landmark cases
Meanwhile, the Court's fall term has started with several potential landmark cases on the docket involving social media, guns, taxes, and possibly abortion. The outcomes of these cases could significantly impact your rights — and wealth, in the case of taxes.
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Here's what you need to know.
Social Media and Free Speech
What are the social media-related Supreme Court cases?
The Supreme Court is reviewing cases related to social media, including two involving state laws in Texas and Florida preventing social media companies from removing false or misleading content. The 5th Circuit Court of Appeals upheld these laws, but social media companies, backed by the Biden administration, have appealed the decision.
They argue that they have the First Amendment right to manage moderation of their online content. The cases are Netchoice, LLC v. Paxton and Moody v. Netchoice, LLC.
Two other cases deal with whether public officials violate the First Amendment when they block critics from their social media accounts.
Guns
Can the right to bear arms be taken away?
The case U.S. v. Rahimi deals with a federal law that prohibits people who are subject to domestic violence restraining orders from possessing firearms. The 5th Circuit Court of Appeals overturned this law, citing it as a violation of the Second Amendment's right to bear arms.
However, the federal government argues that disarming dangerous individuals is a part of the United States' historical tradition of regulating firearms, and therefore the regulation involving domestic abusers should be upheld.
Taxes
What is the Supreme Court tax law case?
The Supreme Court's decision in a case called Moore v. United States could have a significant impact on the U.S. Tax Code and how wealth is taxed. The case involves a mandatory repatriation tax on certain foreign holdings of U.S. taxpayers. The Moores argue that taxing unrealized gains violates the Commerce Clause of the U.S. Constitution. (Unrealized gains are essentially “on paper” profits because the investment hasn’t been sold.)
If the Supreme Court rules in the Moores' favor, the Institute on Taxation and Economic Policy (ITEP) says it could mean windfalls for large corporations such as Apple and Microsoft, with potential tax relief of $37 billion and $18 billion, respectively.
Consumer Protection
What does the CFPB do?
The court heard arguments in a case involving the Consumer Financial Protection Bureau (CFPB), created by Congress in 2010 to protect consumers from deceptive and predatory practices. The case, CFPB v. CFSA, has been brought by payday lenders and is challenging the funding structure of the CFPB. Opponents of the bureau argue that its funding mechanism, which is not based on appropriations, violates the appropriations clause of the U.S. Constitution.
If the Supreme Court rules against the government in this case, it could have far-reaching consequences — not only for the CFPB and consumers but for other federal agencies not funded through appropriations. For example, this could include the FDIC, the Federal Reserve, the U.S. Mint, Social Security, Medicare, and the millions of people they serve.
Abortion Rights
What did the 5th Circuit rule on mifepristone?
The Supreme Court could hear an abortion rights case on access to the medication mifepristone, which has significant implications for both abortion rights and FDA regulations. (A 5th Circuit court invalidated parts of the FDA’s approval for the medication, which could restrict access even in states where abortion is legal.)
A legal stay is currently in effect, allowing access to the medication until the case is resolved.
Other Cases and Controversies
Voting rights, federal agencies, and more on tax?
The Court will also consider a voting rights case. The question involves whether gerrymandering in South Carolina is partisan rather than racial. There are also several cases on the docket considering the limits of federal regulatory agency powers.
For example, one case considers a longstanding doctrine, "Chevron deference," involving how ambiguous statutes are interpreted. The ruling in that case, like the dispute in the Moore unrealized gains case, could change tax law.
So, stay tuned to the High Court. As occurred last term with three key decisions that impact your money, the Supreme Court's rulings in these and other cases might impact you.
(Final rulings in cases on the Supreme Court's docket are normally released at or near the end of June.)
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