This is the Kater Daily Podcast for Tuesday, June 25, 2004. I'm Caleb Brown.

It's long been a wish list item for those on the left, tax unrealized income.

The Supreme Court last week, while not signaling openness to it generally, hasn't closed

the door to such taxes entirely. Tommy Berry edits Cato's annual Supreme Court review.

We discuss the case. Help me understand this a little more clearly.

Before this case

came down at the U.S. Supreme Court,

what was our understanding about the relationship

between probable cause and so-called malicious prosecution?

Well the Supreme Court had established that the Fourth Amendment guarantees the right to be free from

malicious prosecution and broadly put that's the right not to be arrested or charged

on the basis of a crime that the police know or should have known you didn't commit and that they knew didn't even have probable cause,

meaning that they didn't even have a justifiable basis to arrest you. So that had been established by the Supreme Court in a previous decision.

What we did not know is what happens if you're arrested on multiple charges, a mix of some valid charges, but at least one invalid charge that the police just made up.

In that situation, can you sue about the invalid charge, or does at least one valid charge absolve the police of any liability?

So the constitutional scholars acting on behalf of the locality here thought to themselves,

perhaps, probably not.

Hey, as long as we've got one good charge here,

as long as we've got probable cause

for one of these charges, that clears away your ability to sue us for malicious prosecution.

That's right in this case we had one felony charge for money laundering for a pawn shop owner.

And the allegation he's made that seems plausible

...