monopoly tax

monopoly tax

a levy imposed by the government on the ABOVE-NORMAL PROFIT earned by a monopolist. Unlike an order to cut prices or RATE-OF-RETURN REGULATION, such a tax does nothing to restore the loss of the CONSUMER SURPLUS imposed by the MONOPOLY back to the consumer. The immediate beneficiary is the government itself, which may decide to use the tax as a means of raising revenue rather than as an anti-monopoly device. See COMPETITION POLICY.
References in periodicals archive ?
'The government has decided to table a bill for the creation of a new monopoly which is regressive; places a monopoly tax on the poor; increases inequality; creates job losses and further unemployment,' the BBB said in a statement.
(4) Widely misrepresented as imperialist venturing, implying a political empire-building motive, these actions are better understood as venturesome tax policy, because the public displays of force--through the posturing of naval assets, say--are on behalf of those over whom the government has monopoly tax rights and therefore a vested interest in their market success.
What is being fought for is the spoils of plunder of the roving bandits and monopoly tax rights for the stationary' bandit.
She should pay the IMF the "monopoly tax" of $2,000, and afterward she should buy the territory, which will include all of the investment made by "Pedro." In total, "Maria" pays $2,000 to the IMF and $2,550 to "Pedro" and becomes the owner of WHEAT.
The corresponding monopoly tax price is [nt.sub.m].