speedking

Good. Energy companies are profiteering as the value of their raw material increases. Skimming a bit off the top to help prevent old people dying in the winter is exactly the sort of thing that governments should do. No-one will actually suffer if their profits are only reduced by a few hundred million ££'s.

Bad. If we start taxing every company that makes a healthy profit then there will be no incentive for companies to try hard, and a definite deterrent to foreign investment in the UK. The companies need the cash to invest in future energy supplies and resources. It would encourage fraud as companies try to conceal their profits, or even move them abroad. A bad thing for UK plc.

I think windfall taxes are a bad thing.

TonyG

And also, where will the tax actually end up? In Captain Darling's treasure chest, so will it be passed on to those who will actually need it to stay warm/eat during the winter?

al4x1

more to the point the companies will just add it in to the initial customers costs so ultimately our bills will go up to pay the extra tax.

Martin2005

I think in certain instances windfall taxes can be justified. Whilst I don't believe in unfairly punishing successful businesses, in the case of energy companies, their profits are not being inflated by good business practice, they are raking it in because of market price anomolies.

So yes a windfall tax would be a good thing in this case

unclebuck

Why should only the poor receive any windfall benefits and what about the rest of us being bled dry by this socialist regime?

What you mean of course, is that the money extorted from the consumer should be returned to those who have been over-charged.

Yes, that feels better already.

f1_fan

iTrader: (9)

No windfall taxes are wrong.

They just shouldn't have been privatised in the first place.

SJ_Skyline

Impose a windfall tax and you'll see two things:
- Companies relocating overseas where the tax doesn't exist (and the associated rises in unemployment/ drop in corporation tax revenues)
- Further increases in energy prices. In times of plenty, energy companies plough this money back into exploration. Remove the exploration and identification of new sources and you force up the price.

I suppose the flip side applies as well when the company makes a loss the treasury will underwrite it? Darling, stick to something you know about - like wanking.