I’ve pointed out that if there are to be windfall taxes on energy companies then they should be on energy companies. Note the if near the start there. But if horrible Big Oil is to be hammered then so should Big Wind, Big Solar and Big Biomass.
The argument against having a windfall tax at all is in this morning’s stock market. Drax is down 13% on the mere rumour of a windfall tax, Centrica 7%.
Quick slide rule peer at suggests that the losses to investors are larger than the revenue which might – recall, it’s still only might – be collected. Which means that we’ve a tax here with a greater than 100% deadweight. The losses are greater than the revenue collected.
That’s just insane. It’s a very bad tax indeed.