LAT opposes loss carrybacks

The LAT argued on Saturday that allowing businesses to carry back losses under California's tax law, as federal law does, would reward Countrywide and companies like it at the expense of California's taxpayers. But taxing companies or people year by year is arbitrary. That's long been understood by people who analyze tax policies. Why choose a single year? Why not two, three or five year taxable periods? Isn't it fairer both to governments and taxpayers to level out year to year fluctuations? Wouldn't level tax revenues help solve California's binge-bust budget problems?

The LAT wants what it wants. First, to punish Countrywide and similar companies. The LAT wants to be judge and jury. Second, to get some money. California has a $15 billion budget deficit. Gotta cover it somehow.