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 ?
Despite its name, the windfall profits tax was actually an excise tax on oil, applied to the difference between the market price of crude and a "statutory 1979 base price" that was adjusted quarterly for price inflation and state severance taxes.
The windfall profits tax was very unfortunate because it suddenly made Mongolia one of the toughest tax regimes for mining," Oyun said.
For example, the Windfall Profits Tax of the 1980s resulted in lower domestic oil production, higher oil imports, and a depressed U.
The Algerian energy minster, Chakib Khelil, says he's still waiting for international oil companies' reaction to the proposed new law introducing the windfall profits tax on oil, along with a move to give the state-owned oil firm Sonatrach a 51% interest in their contracts.
International oil companies (IOCs) are calling for further clarification of Algeria's hydrocarbons regime, with continued confusion about a new windfall profits tax.
A windfall profits tax is in the air, and we've seen what happens to other companies that dare to resist Congressional intimidation.
org believe that oil companies are gouging gasoline consumers, and four out of five (including 76 percent of Republicans) would support a windfall profits tax specifically to fund alternative energy research.
called for a windfall profits tax on oil companies; the Department of Energy placed a Gas Price Hotline link prominently on its homepage; and Sen.
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.