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Culture War Roundup for the week of June 17, 2024

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In other SCOTUS news, we have four more opinions published today.

Two of the cases involve very similar issues--Section 1983 claims for retaliatory arrest and malicious prosecution--but for some reason the breakdown of Justices is different.

Gonzales v. Trevino: A per curiam opinion, with separate concurrences by Alito, Jackson, and Kavanaugh, and a dissent by Thomas. Gonzales was arrested and charged with stealing government documents, based on her allegedly attempting to make off with a city council petition (possibly to cover up that she obtained some of the signatures on the petition under false pretenses). Alito's concurrence helpfully summarizes the facts of the case, and, in an unusual move, even includes links to Youtube videos of the incident! (Here and here, for your viewing pleasure). Gonzales admits that there was probable cause to arrest her, but she claimed her arrest was in retaliation for her protected speech criticizing other city officials. The relevant precedent, Nieves v. Bartlett, says that probable cause defeats a retaliatory arrest claim unless the arrestee can show that other people, who allegedly committed the same crime, were not arrested (which would imply that the arrest was motivated by the arrestee's speech, rather then genuine law enforcement concerns). Gonzales presented evidence that other people ... had been arrested, for slightly different crimes, but nobody had been arrested for doing exactly what she allegedly did (with no evidence that anyone else had ever tried to do exactly what she allegedly did). To me, this evidence seems irrelevant to the Nieves exception, which requires a showing that similarly-situated people were treated differently, which is not what Gonzales' evidence showed. But the majority decided it was good enough to, at least, merit further consideration by the lower court.

Chiaverini v. City of Napoleon: Kagan writes for the majority, Thomas dissents joined by Alito, Gorsuch writes his own dissent. A jewelry store owner allegedly bought a stolen ring. He was charged with receiving stolen property, dealing in precious metals without a license, and money laundering. Prosecutors later dropped the charges. Chiaverini brought a 1983 claim for malicious prosecution--which, again, requires proof that the government lacked probable cause to arrest him. The lower court threw out his claim because the first two charges were "clearly" supported by probable cause, even if the money laundering charge was not. The Supreme Court reversed, holding that if even one of the charges was not supported by probable cause, Chiaverini could have a valid claim. Both Thomas and Gorsuch, in dissent, seem to agree that malicious prosecution is not properly considered a constitutional claim for section 1983 purposes--the main difference is that Gorsuch relies on an opinion he wrote while a judge on the 10th circuit Court of Appeals.

Diaz v. United States: A case about expert witnesses in criminal trials. The most interesting thing about this case is that Thomas wrote the majority opinion, Jackson concurred, and Gorsuch wrote the dissent, joined by Sotomayor and Kagan.

Moore v. United States: A mind-numbing income tax case. Kavanaugh wrote the majority opinion, Jackson concurred, Barrett concurred joined by Alito, and Thomas dissented alone as is his wont. Most interesting to me, however, is the publication of a "statement" by Justice Alito, concerning Senator Richard Durbin's sending a letter to Chief Justice Roberts "urging" him to "ensure" that Alito recuse himself in the case. Durbin's letter was ostensibly based on the view that Alito could not be trusted to decide the case without bias, because David B. Rivkin, an attorney for the Petitioners in the case, once interviewed Alito for the Wall Street Journal. Alito points out that the mere fact he was interviewed does not give rise to a presumption of bias. In addition, he points out that Durbin's letter seems like a suspiciously isolated demand for recusal: Alito provides a half-dozen footnotes detailing the numerous times his colleagues on the Court have been interviewed by media companies and then gone on to decide cases wherein those media companies were parties. I had fun reading this, but I'm sure politicians will continue making baseless demands for recusal on similarly flimsy pretexts.

On a skim of Moore (see here for my earlier post based on the briefs):

  • The IRS wins 7-2 (Kav writing, but it read like a Roberts opinion), on the narrow grounds that a tax on realised income of a corporation imputed to the shareholders is an "income tax" and therefore legal under the 16th amendment. It avoids the question that people were excited about, and which the Court said it would answer when it granted cert, which is whether a tax on unrealised income can be an "income tax".
  • Thomas (who I expected to dissent) and Goresuch (who I did not) dissent. The tone of the dissent is that their real beef is that the majority punted on the big question - their writing on why the majority are wrong on the imputed realisation question they did answer is a bit half-hearted.
  • Barrett and Alito do not join the majority, but concur in the judgement, saying that there is a realisation requirement, but that imputed realisation meets it.
  • Jackson joins the majority, and writes separately that there are lots of ways the tax at issue might be indirect (and thus legal), including the possibility that a tax on Americans holding shares in foreign companies might be an indirect tax by analogy with tariffs and suchlike.

So on the question that made the case a hot-button case, you have 4 justices saying that there is a realisation requirement, 4 1/2 punting, and Jackson sort-of-saying that there isn't. This means that a wealth tax almost certainly loses if it reaches the Court.

Other comments:

  • Everyone involved (parties and all 9 justices) was very keen to say that they didn't want to blow up the Internal Revenue Code by saying that all forms of taxation based on imputed realisation are unconstitutional. There is a lot of casuistry about whether or not the tax at issue is distinguishable from the long-standing forms of imputed realisation (S-corps, LLPs and similar corp/partnership hybrids, personal service company taxation etc.)
  • Both the majority and the dissent write about the history from the perspective that the 16th amendment redefined income taxes as indirect, not that it made a specific type of direct tax legal. This seems silly to me.

My prediction was:

With that model, I will guess that Roberts will guide a 5-4 or 6-3 majority that carves out a narrow decision that prevents expansion of taxation powers in the most egregious fashion while not rolling much back. Gorsuch may well pen a concurrence that's much more strident and Thomas may join him with a "yeah, and also we should burn all this shit down" opinion. Sotomayor or Jackson will pen a leftist screed that amounts to, "but if the conservatives are right, this would stop a lot of taxes that we like!" opinion. Kagan will dutifully concur, but decline to write an opinion because the reasoning is too sketchy.

I didn't go narrow enough and didn't give the liberal justices enough credit for being willing to join that narrow opinion. Likewise, I overstated just how far Gorsuch and Thomas would be willing to go. As with many decisions, the correct update is in the direction of the Justices just not actually being very radical.