Governments are proposing windfall taxes on energy firms

Save time by listening to our audio articles as you multitaskPoliticians have reached for such “windfall” taxes before. Bulgaria, Italy, Romania and Spain have imposed them on power generators in recent months, as benchmark energy prices have risen. America began taxing oil producers in 1980, hoping to cash in on profits that were expected to be made after prices were deregulated.

Britain’s tax probably fitted the ideal better than most. It had a clear rationale: that excess gains had come from the underpricing of shares when firms were privatised. Post-privatisation profits were multiplied by a price-to-earnings ratio; a 23% tax was levied on what was left over once public proceeds from privatisation were subtracted. Even then, however, the tax failed to target the beneficiaries of excess gains. British Telecom, the first utility to be privatised, had listed in 1984.

The European Commission’s plan has its flaws. It does not explain why the current situation warrants a one-off tax, adding uncertainty about when such levies might be used again. Furthermore, the energy industry buys and sells power using long-term contracts, making the link between today’s prices and tomorrow’s profits fuzzy. And prices can fall as quickly as they rise. By March 16th, for instance, the oil price was back to about $100 a barrel.

So you became a horse

Si

Any taxes will be passed onto the consumer. Not a good move.

Tax the companies then they will pass the tax onto us. If the price is capped (ie price controls) then hoarding and shortages will start

Democratic politics tax anything that moves. As if the public doesn’t ultimately suffer the consequences. Problem is that the taxes are then spent on Federal make work projects that don’t produce anything.

Typical government, chasing symptoms of the problems they caused

What happens when they find out, no windfall? Will they give up their power?

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Windfall taxes on energy companies are a bad ideaRussia’s invasion of Ukraine has caused oil and natural-gas prices to rocket, which has strengthened politicians’ impulses to levy “windfall taxes”. But imposing them would be a mistake here are my naked photos Ukraine_War made known that Elite Zionists wants to destroy all Nat. Reg. & Continental Powers including USA, UK, Russia, China, NATO, CSTO & SEATO, to form One State Rule based on an artificial faith, Satanism, as a tool to control and command the people for a Fragile Slavery. We have downside taxpayer funded bailouts, why not have special windfall taxes?
Source: TheEconomist - 🏆 6. / 92 Read more »