My old college roommate Jared Polis, soon to be a Democratic Congressman from Colorado, pens a terrific op-ed in today’s Wall Street Journal offering a unique non-bail-out solution to the automobile meltdown.

By waiving the future capital-gains tax on all investments in the automobile industry, we enhance the projected return models and therefore the likely occurrence of a privately funded “bailout.” There are turnaround firms and funds, and they are experts at what needs to be done. Tax exemption for gains would certainly get their attention. It also wouldn’t cost taxpayers anything because it only forgoes future government revenues that wouldn’t exist absent this incentive.

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