Windfall Profits Tax


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Windfall Profits Tax

A tax on profits seen as excessive. For example, a windfall profits tax may be imposed on oil companies when their profits rise above a certain amount. The idea behind a windfall profits tax is to encourage the taxed persons or companies to lower their prices, which is thought to be good for consumers. However, it may have the effect of reducing investment because the aftertax profit may not be worth the effort. See also: Windfall shares, Windfall tax.
References in periodicals archive ?
The windfall profits tax was very unfortunate because it suddenly made Mongolia one of the toughest tax regimes for mining," Oyun said.
With $25 billion in profits for the July-September quarter, I feel a windfall profits tax on all oil companies should be implemented immediately to compensate for the bad impact price gouging has had on small businesses, families and college students like myself.
And yesterday the industry was told to buck up or see a growing clamour for a windfall profits tax.
He said he would impose a windfall profits tax on US oil companies if he was elected.
The Subsections that follow first contrast the two major extraordinary profits taxes imposed by the federal government since it has had the ability to impose such levies: the excess profits taxes imposed during the two world wars and the windfall profits tax imposed on oil producers in the wake of OPEC's successful price hikes in the 1970s.
The Tribunal also found that Burlington's investment, expropriated by Ecuador, included the contractual right to be indemnified for the effects of the Windfall Profits Tax (Law 42).
DEMOCRATIC presidential candidate Barack Obama has said he would impose a windfall profits tax on US oil companies and he would use this money to help families pay for their skyrocketing energy costs.
Yes, they talk about putting a windfall profits tax on Big Oil which would do nothing but dry up investment money.
Among them are "a windfall profits tax in the United Kingdom," which reduced earnings by about $111 million, and "a mild summer in the Southeast," which affected energy sales.
The amended Windfall Profits Tax repeals the original Windfall Profits Tax.