This is John Batcher speaking with colleague Richard Epstein, Professor Richard Epstein of the

Hoover Institution teaches law at NYU and the University of Chicago about the decision by the

Supreme Court 7- 2 to maintain the tax on the Moors,

More versus the United States, more Ettox versus United States,

having to do with the 2017 Tax and Tax Act that made it possible

one time to tax repatriated assets from overseas. The story is complicated enough so that Richard tells us a

wonderful tale from Milton Friedman about taxing unrealized assets.

There's a hole in the front of the boat, says the man.

What do we do about it?

The egalitarian, that is, that is, that want to tax everybody say well put a hole in the back of the boat

We'll level it out of course you'll sink faster

Whereas the recommendation from Milton Friedman and Richard Epstein is

patched the hole in the front. Richard then draws a conclusion based upon the

ambition of the Biden administration to bring back the wealth tax, taxing each

year your unrealized assets.

Here's Richard Epstein of the Hoover Institution telling the Milton Friedman story to illustrate the

Biden ambition in the second term to tax assets

unrealized in the markets or in your possession.

Unrealized.

More of this later.

Well, the Shoals are the ones that I mentioned to you.

All the situations where you have financial assets that are taxed without realization.

...