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.
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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.
McCoy continued, "That $80 billion translates into an Intel monopoly tax on every consumer who purchases a computer.