There is another signal from Murphy, subtler but equally distressing. Americans tend to believe that activity that is taxed is somehow suspect, whereas untaxed activity is more virtuous. Now the court is confirming to citizens what their lawyers already tell them: Litigation is virtuous. More virtuous than buying a lottery ticket, for lottery winnings are taxable.
The hope is that the Supreme Court, which is likely to hear the case, will lay Murphy to rest. Then Congress can alter the law if it likes. But as it stands, Murphy is dangerous. It confirms what Americans already believe: The world owes them.
You'll want to read the whole thing.
Prior Tax Update Coverage of Murphy:
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