Windfall Tax
Categories: Tax, Ethics/Morals
See: Windfall Profits.
To a firm, a windfall tax is rain on their parade of profits. A semi-Socialist government might levy a windfall tax against certain industries when everyone else is roughing it, and that industry is making extra profits. For instance, if there’s some kind of recession and the economy is rough—except for, say oil and coal, which are making bank—the government might slap a windfall tax on the oil and coal industries.
It’s not that they’re trying to punish those industries. It’s just that, because most people (and firms) are having a tough time, so is the government piggy bank. They want to use the windfall tax to boost social programs to try to help dampen the bad economic climate everyone is in. Still, there are anti-windfall tax groups (definitely the firms that are taxed) that say windfall taxes makes them not want to make more profits, and that if they’d gotten to keep their money, they’d reinvest it and be innovative magicians, which would also do good for the economy.
Who’s to say, Comrades?
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Finance: What is a windfall?2 Views
Finance Allah Shmoop What is Ah windfall Waterfall snowfall pratfall
that none of those are what we're talking about here
So what's a windfall Well it's an incredible unexpected sudden
fortune usually of the dolla dolla bill variety like you're
at the blackjack table and you think you're only about
to win fifteen bucks for that hand But it turns
out you just won the casinos one million hand and
suddenly you're surrounded by streamers and confetti and heavily made
up women in rhinestone studded dresses And well you're being
handed a massive check for one million dollars Yeah you
should probably not double down or you bought a Powerball
ticket on a whim You usually never waste your money
on these things But you had a single that was
just burning a hole in your pocket And you were
bored while you were waiting in line at the Quickie
Mart there So you took a shot and you scored
and now you're set for life Huge windfall Yeah Final
example You were employee number eight at Google and you
decide to finally cash in your stock options Less of
a windfall and more of a sky fall there but
well it might be time to do a Google search
for how much does it cost to buy your own 00:01:17.84 --> [endTime] island Yeah that's a good one