*** OFFICIAL BREXIT SUNLIT UPLANDS and #MEGA THREAD ***

[OngBonga]

Well if the energy companies are being taxed more they'll just charge the consumer more, or invest less in infrastructure and maintenance. I doubt the shareholders will get lower dividends.

[Poopadoop]

Well if the energy companies are being taxed more they'll just charge the consumer more, or invest less in infrastructure and maintenance. I doubt the shareholders will get lower dividends.

It's the "windfall" part of the tax that makes it work. They're being taxed on unexpected, excess profits. I.e., they have what they expect to earn as profits, the prices go way up, so they end up making a lot more than they thought they would. They already had their exploration, infrastructure, maintenance budgets covered in their original budget, the extra profit is just a windfall.

And if they get a windfall tax and they say "we don't like this, we'll raise the prices," they'll just get taxed again when their new profits come in. They don't really have an out.