WASHINGTON -- The Supreme Court yesterday unanimously upheld the authority of Congress to pass tax laws that are applied retroactively, but it suggested that any period of retroactivity must be "modest."

The cour in U.S. v. Carlton said a 1987 law that Congress passed to close an unintended and expensive loophole in the estate tax provisions of the Tax Refort Act of 1986 was rational and served a legitimate purpose.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.