Are windfall taxes on corporations a good or bad thing?

Question

Do they hamper business, or is there an overriding reason to use them?

Answer 1

Bad. Of course, in my opinion.

:start rant:

Corporate taxes are a political cop out. They are, in essence, a hidden tax on the consumer, because, like any other expense, it is passed on in the cost of the goods. Because they are hidden, the consumer doesn't realize he or she is paying them, and the politicians get their tax revenue without "raising taxes."

If a corporation actually has to pay a tax, then they have to have a good reason (gathering funds for expansion) or they need a new accountant. The money, from the business point of view, is much better spent on advertisement, expansion, improvement, etc., than on government taxes. All of these expenses can lower the tax to zero.

:end rant: