It does not. A prime example is the law which prohibits carry forward of losses of sick industries in takeovers. If a sick, closely held company is to be taken over for turning over, carry forward of losses is not allowed unless the old shareholders continue to own at least half the shares. I simply cannot find a good reason. Sickness of industry is a very big problem facing the economy.
Government bail out is out of question.
We inhibit closure of units being afraid of labour. We inhibit takeovers by our tax laws. If others are to take over sick units, the best incentive could be the carry forward of accumulated losses. It costs the government little, is fair, and makes takeovers affordable for both. But our tax laws won't allow that.