There is nothing new about the Congress being interested in reasonable profits when calculating taxes. You're aware of "anti-dumping" legislation, right? Why shouldn't a windfall-profits tax consider "reasonable profits"?

http://en.wikipedia....pricing_policy%29

While there are very few examples of a national scale dumping that succeeded in producing a national-level monopoly, there are several examples of dumping that produced a monopoly in regional markets for certain industries. Ron Chenow points to the example of regional oil monopolies in Titan : The Life of John D. Rockefeller, Sr. where Rockefeller receives a message from Colonel Thompson outlining an approved strategy where oil in one market, Cincinnati, would be sold at or below cost to drive competition's profits down and force them to exit the market. In another area where other independent businesses were already driven out, namely in Chicago, prices would be increased by a quarter.[2]

[...]

n the United States, domestic firms can file an antidumping petition under the regulations determined by the United States Department of Commerce, which determines "less than fair value" and the International Trade Commission, which determines "injury". These proceedings operate on a timetable governed by U.S. law. The Department of Commerce has regularly found that products have been sold at less than fair value in U.S. markets. If the domestic industry is able to establish that it is being injured by the dumping, then antidumping duties are imposed on goods imported from the dumpers' country at a percentage rate calculated to counteract the dumping margin.

Related to antidumping duties are "countervailing duties". The difference is that countervailing duties seek to offset injurious subsidization while antidumping duties offset injurious dumping.

Some commentators have noted that domestic protectionism, and lack of knowledge regarding foreign cost of production, lead to the unpredictable institutional process surrounding investigation. Members of the WTO can file complaints against anti-dumping measures.

If calculation of cost of production, which necessarily assumes a reasonable profit (7% for anti-dumping, IIRC), applies to claims for dumping, why shouldn't it apply to calculations of a windfall profits tax?

IOW, faux outrage. You shouldn't fall for that.

HTH.

Cheers,
Scott.

Yeah, dumping is only applicable in international trade. That's why the Wikipedia article talks about Rockefeller dumping oil in Cincinnati. Way to miss the point.

The point is: There is nothing new about the US examining costs of production, including estimated fair profits, in determining what sorts of actions to take in regulating commerce.

The bill says:

The Board shall make reasonable profit determinations for purposes of applying section 5896 of the Internal Revenue Code of 1986 (relating to windfall profit on crude oil, natural gas, and products thereof).

Emphasis added.

Yeah, the Board is going tell the market what a reasonable profit is. Sure.

Not.

The language clearly says that the tax will be based in part on what the independent Board determines is a "reasonable" profit. I'm sure your buddies at Fox and TownHall would be throwing an even bigger fit if the IRS Commissioner or Secretary of Commerce made the determination instead.

FWIW.

Cheers,
Scott.