Moore v. United States

Kathleen Moore's lawsuit against the government over a tax bill sparked a debate about corporate personality and the taxation of legal entities. The Supreme Court upheld the constitutionality of a tax that attributed income from foreign corporations to their American shareholders. The Court's decision revealed a divide among the Justices on how the Sixteenth Amendment treats legal entities. Some viewed the federal government as having a choice in how to tax such entities, while others believed that corporations are separate entities from their shareholders. The Court held that Congress can attribute a corporation's income to its shareholders and tax them accordingly. The decision also highlighted the historical debates over the nature of corporations and partnerships, which have influenced the development of organizational law. Overall, the Court's ruling affirmed Congress's freedom to choose how to tax different legal entities.