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by stenl 1617 days ago
Or maybe we need the opposite: basically just state that you did this stupid stuff only to avoid the tax, so you should pay the tax anyway.
2 comments

The solution to a bad or poorly written law is not to leave it on the books and have some "oh well we actually meant" thing that means it can be arbitrarily applied in a different way than written.

Courts can interpret laws if the interpretation is the problem. If there is just a stupid loophole, then either the law itself makes no sense (as seems to apply to this Jones Act) or it needs to be reworded to align with its intent.

This reminds me of all the california electricity deregulation games where Enron et al moved power out of state and back, or had plants go down strategically for maintenance in order to gain the system. The correct solution is not to say "play nice, you know what we meant". It's to have a consistent and enforceable set of rules that dont admit gaming.

Laws, at least in many European countries, are prefaced with a preamble, introduction, or Vorwort, that explains a bit of the history, the motivation, the underlying principles, the philosophy, the practicality, and the guidelines for interpretation of that law. The words, as written, are not to be taken, in any case literally. Moreover, a literal interpretation contradicting the spirit of the law is unlawful, and that is one of the principles of many legal systems. Using a loophole that contradicts the law is unlawful; imagine the law says you have the right to water your plants in your balcony; however, you only do it when the neighbor below is sitting at their balcony with the intention to bother them: you are abusing the law and committing an unlawful act.
A law system like that requires wisdom. America has a lot of smart but almost no wisdom, so it would be chaos and anarchy if we suddenly switched to such a system.
You're being downvoted but that's actually how tax works in the U.S. and Europe.

Tax is one of the few areas of law where activities can be declared illegal and subject to punitive sanction after the fact. For example, the fictive loss tax shelter scheme that was popular 15 years ago. Fictive losses were technically legal at the time the scheme began (in the sense that they were legal within the letter of the law but violated the intent of the law), and weren't explicitly stated to be illegal until years later (https://en.wikipedia.org/wiki/Jenkens_%26_Gilchrist).