Doesn't a "Windfall Profits" tax boarder on communism?

Question

When do we drill if not now? Fifteen years down to road isn't getting any closer.

America was founded on the strength/drive of entrepreneurs and corporations. Seems to me like we've forgotten this.

Don't like gas prices..... WORK HARDER or DRIVE LESS. The choice is yours.

Answer 1

A windfall gain is any type of income that is unexpected. The list of windfall gains includes, but is not limited to:

Lottery winnings

Unexpected inheritance

Gains from demutualization

What people do with windfall gains is subject to much debate. Windfall profits are a type of windfall gain. While they differ from one account to the next, most economists hypothesize that the majority of the gains are saved, due to the Permanent Income Hypothesis. They can occur due to unforeseen circumstances in a product's market, such as unexpected demand or government regulation. Since the profits were unforeseen, some legislators believe that taxing them should not hurt the company. This type of taxation is known as a windfall profits tax.

Demutualization (or demutualisation) is the process by which a customer-owned mutual organization (mutual) or co-operative changes legal form to a joint stock company. There are three general methods in which an organization might demutualize, full demutualization, sponsored demutualization, and into a mutual holding company (MHC). The Chicago Mercantile Exchange became a shareholder-owned public corporation in 2000 through a public offering. Over 200 US mutual life insurance companies have demutualized since 1930. Numerous agricultural supply and marketing cooperatives have demutualised. A building society is a form of mutual banking organization that emerged in the UK in the 19th century, for personal savings and home mortgages. The UK motorists' organisation, The Automobile Association, demutualized and was purchased by Centrica plc in 1999. As well as the many agricultural supply cooperatives that demutualized, a small number of general retail consumer's cooperatives have demutualized or considered demutualization. Irish grocer-owned retailers' cooperative, ADM Londis, changed its capital structure in 2004 to an unlisted public limited company, allowing its owners to trade its stock privately at market value.

The permanent income hypothesis (PIH) is a theory of consumption that was developed by the American economist Milton Friedman.

A windfall profits tax is a tax on profits that ensue from a sudden windfall gain to a particular company or industry. In 1980, the United States enacted the Crude Oil Windfall Profit Tax Act (P.L. 96-223) as part of a compromise between the Carter Administration and the Congress over the decontrol of crude oil prices.

A mutual, mutual organization, or mutual society is an organization (which is often, but not always, a company or business) based on the principle of mutuality. The primary form of financial business set up as a mutual company in the United States has been mutual insurance. Various types of financial institutions around the world are mutuals, and examples include:

Asset management companies (most are not mutual)

The Vanguard Group - United States

Building societies

Nationwide Building Society - United Kingdom, largest building society

Cooperative banks

Credit unions

Friendly societies

Mutual insurance/assurance companies

A mutual may convert itself to a non-mutual through the process of demutualization.

Answer 2

Amen

Answer 3

Hopefully. It is almost Socialism (the doctrine that made the UK and Europe great), so hopefully we can have more progressive taxes like this in the future. It's not quite Communism (or good enough) and hopefully we can find some guts and nationalize the basic utility companies soon  

Answer 4

Ha - both of your suggestions are anathema to the average american worker! Not sure how it would hang in the UK