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 Profit Tax on Crude Oil: Overview of the Issues.

Removing the 1970s Crude Oil Price Controls: Lessons for Free-Market Reform

China needs to reduce the windfall profit tax to accommodate struggling producers.

China to ease tax on oil producers after prices slump

Highlights of the 2012 Budget" posted on the Ghana government website in mid-November include a statement that "Beginning in the fiscal year 2012, the following changes to the taxation of mining activities will apply: the corporate tax rate for mining companies will be increased from the current 25% to 35%; a windfall profit tax of 10% will be collected from all mining companies; and a uniform regime for capital allowance of 20% for five years for mining, as is the case in the oil and gas sector, is also established.

Ghana 2012 budget calls for mining tax hikes

The book consists of four edited and augmented Congressional Research Service (CRS) reports from 2006 to 2008, on the crude oil windfall profit tax of the 1980s and implications for current energy policy; oil industry financial performance and the windfall profits tax; current status and analysis of gas tax subsidies; and the use of profit by the five major oil companies.

The oil industry and windfall profits

And impose a windfall profit tax on oil companies in order to provide a $1,000 emergency rebate to American middle class families.

What if you were the US President?

Shale developments are highly capital intensive and a windfall profit tax assessment being discussed in Congress would directly and immediately reduce investment in U.

Natural gas from Shale could double in next ten years

His abandonment of the windfall profit tax on the greedy energy companies as a "gimmick" (trust me, Gordon, you really, really NEED a gimmick) was rendered ridiculous by the fact it was him who'd led us on in the first place.

Sinking feeling

The context of the proposals lies in the Crude Oil Windfall Profit Tax Act (P.

Gasoline prices: new legislation and proposals

The "oil industry's stellar results renewed talk among some politicians for a windfall profit tax that would push companies to invest even more in new production and refining capacity.

Windfall profits for the government

BACK IN THE LATE 1970s, WHEN GASOLINE PRICES zoomed and oil companies were making money hand over fist, our government enacted a windfall profit tax to return some of those unjustified gains to the public that was paying for them.

How times have changed

First, some individual windfalls are large (for example, during its heyday the Windfall Profit Tax on Oil, discussed in Subsection IV.

Windfalls

Hall, his wife, and other family members owned a five percent overriding royalty interest in a federal oil and gas lease in Wyoming that was subject to the windfall profit tax.