Italy approves 40% windfall tax on banks for 2023 as profits soar

Post by gruez » Tue, Aug 08, 2023, 3:49 PM UTC

fock wrote: post #48

gruez wrote: post #23

Earlier quoted context omitted.

> No one suffers from taxing windfall profits. Windfall , by definition, being unexpectedly high profits. 1. This is objectively false. Shareholders of the bank suffer, because they get less profits. This may not be a crowd that solicits a lot of sympathy, but they still exist. 2. How do you feel about VCs and startups? Their entire business model is investing in 100 companies, knowing that 99 will fail but 1 will ma…

> knowing that 99 will fail but 1 will make astronomical returns. How would this work if there were windfall taxes? the same way it works now: counterbalance losses with gains.

Post by Biologist123 » Tue, Aug 08, 2023, 3:49 PM UTC

madballster wrote: post #21

This is an old European disease. Corporate profits are often seen as an adverse result; of consumers being taken advantage of unfairly. Taxing excess profits beyond what are already high tax rates is popular amongst voters (e.g. see poll results in the UK, 2022). However, this lowers the appeal for new entrants to enter these markets to compete for these excess profits through better and more efficient products and s…

Post by [deleted] » Tue, Aug 08, 2023, 3:51 PM UTC

webdood90 wrote: post #40

madballster wrote: post #21

This is an old European disease. Corporate profits are often seen as an adverse result; of consumers being taken advantage of unfairly. Taxing excess profits beyond what are already high tax rates is popular amongst voters (e.g. see poll results in the UK, 2022). However, this lowers the appeal for new entrants to enter these markets to compete for these excess profits through better and more efficient products and s…

I didn't think it was possible but banking shills apparently exist > If one wants free enterprise and reap its benefits who wants this from banking??? > one has to allow high profits for companies and see if competition takes care of the "problem" ah, yes - we've seen this work so many times before!

Post by mschuster91 » Tue, Aug 08, 2023, 3:52 PM UTC

madballster wrote: post #21

This is an old European disease. Corporate profits are often seen as an adverse result; of consumers being taken advantage of unfairly. Taxing excess profits beyond what are already high tax rates is popular amongst voters (e.g. see poll results in the UK, 2022). However, this lowers the appeal for new entrants to enter these markets to compete for these excess profits through better and more efficient products and s…

Post by a-user-you-like » Tue, Aug 08, 2023, 3:53 PM UTC

concinds wrote: post #37

madballster wrote: post #21

This is an old European disease. Corporate profits are often seen as an adverse result; of consumers being taken advantage of unfairly. Taxing excess profits beyond what are already high tax rates is popular amongst voters (e.g. see poll results in the UK, 2022). However, this lowers the appeal for new entrants to enter these markets to compete for these excess profits through better and more efficient products and s…

Your assumption, that if without these extra taxes, more banks would be created and the industry would become less concentrated, seems untrue. The banking industry seems to be becoming hugely concentrated in every Western country, regardless of windfall taxes.