Here’s the logic of our elected representatives in Congress when it comes to taxing profits: Oil companies are benefiting from the higher price of an asset (oil), some of which is driven by speculation. So the proper policy prescription is to impose a special windfall profits tax on them during that boom period. Home builders benefited from the high price of an asset (housing), some of which was driven by speculation. So the proper policy prescription is to allow them to reduce their tax bills they paid during that boom period via a special loss carryback provision. Can you tell it’s an election year?
