If the government taxes companies on windfall profits, would that apply to sports teams as well?

Question

What other, besides oil companies, would or could this tax apply to? If sports teams have the ability to offer athletes multi-year $100 million contracts, doesn't that imply that they too over charge for admission to games and other sporting merchandise?

Answer 1

Congress could structure it to affect any industry it wanted.  It can specify in the tax code that it only applies to companies that make over $X billions or a specific industry.  There are lots of code sections that apply to specific industries.

Answer 2

Who would be subject to the tax would depend on how the law was written.  If it was written though specifying that it only applied to oil companies, the Supreme Court would likely toss it out before the ink was dry on the Congressional Record.