Should the U.S. have a wealth tax?

The Supreme Court heard arguments in a case last week that could block the United States from ever imposing a wealth tax, potentially upending proposals to tax rich people’s amassed fortunes instead of just their yearly incomes.

The case, Moore v. United States, officially centers around a relatively minor dispute over the government’s power to tax companies’ overseas earnings. But a number of conservative groups are hoping the justices will use it as an opportunity to draw strict new lines that would preemptively render a wealth tax — or any similar scheme — unconstitutional.

Support for the concept of raising taxes on the rich is nothing new, but the specific idea of a wealth tax has only really gained popular attention in the past few years thanks to proposals by progressives like Sen. Bernie Sanders and Sen. Elizabeth Warren.

Rather than simply paying income taxes or capital gains taxes, wealthy people would also be taxed on the cumulative value of all the stock, property, vehicles, art and other assets they own — which, for the most part, goes untaxed under current law. President Biden has also suggested using a similar mechanism as part of his proposal for what he calls a billionaire minimum income tax.

Regardless of what the court ultimately rules, there’s little chance of Congress passing a wealth tax anytime soon. But the prospect of having that option shut off for good has reignited debate over whether a wealth tax would really benefit average Americans.

Proponents say a wealth tax is necessary to close loopholes that allow a tiny number of people to stockpile extraordinary wealth while contributing a much smaller share of their net worth to the common good than the typical worker. They argue that the money from a wealth tax could help fund critical programs to lift the poorest Americans out of poverty without placing any extra burden on the middle class.

But opponents say wealth taxes would discourage investment and stunt economic growth, which would ultimately mean a weaker economy for everyone. Many also believe the idea is incredibly impractical, arguing that it would be close to impossible to assign a fair value to every asset in an ultra-wealthy person’s sprawling empire.

Based on the justices’ statements during legal arguments, most legal analysts expect the Supreme Court to decline the opportunity to preemptively rule a wealth tax unconstitutional. But that won’t be certain until its final ruling is released sometime next year.