Defence firms win public support

[JIMMY12345]

We are in the good times now with inflation at only 10%.The high energy prices are due to emergent economies like China competing for gas/petrol .God knows in a few years when minerals get scarce what will happen. Meanwhile why tax energy firms Shell etc ( we know Liz Truss and a few on this forum worked for big energy firms)
Tax defence companies. They are making huge fortunes out of Putin's war. Make defence companies popular - Windfall tax charge on defence lets get our tax back

 

[exchemist]

We are in the good times now with inflation at only 10%.The high energy prices are due to emergent economies like China competing for gas/petrol .God knows in a few years when minerals get scarce what will happen. Meanwhile why tax energy firms Shell etc ( we know Liz Truss and a few on this forum worked for big energy firms)
Tax defence companies. They are making huge fortunes out of Putin's war. Make defence companies popular - Windfall tax charge on defence lets get our tax back

I'm not with this, I'm afraid. (Yes I worked for Shell.)

I think we do need to tax windfall profits from Putin's war made by energy companies on their activities in the UK (e.g. N Sea). It seems only right to recycle those unexpected profits back to alleviate real hardship among the poorest in society. What's more I feel sure that people like Ben van Beurden almost expect it. But don't expect him to volunteer for it: he has a duty to his shareholders. Also, bear in mind the UK government has no right to take profits earned on business in other countries and use that to help UK consumers. So let's look at UK-earned profits rather than global profits. But subject to that restriction, I'm all in favour. (I don't buy at all the argument that it will put off investment in renewable energy. It would be an emergency measure, necessitated by wartime and would not weaken the economic case for renewable investment that existed before Putin turned off the gas, as the tax would be on extra profits that were not part of that pre-existing economic case.)

Re defence industries, we need these to be healthy and productive more than ever, now that we are sending military supplies to Ukraine on a big scale. Now is, in my view, not the time to penalise armaments producers for making stuff that defends democracy and the freedom of nations.

 

[JIMMY12345]

I'm not with this, I'm afraid. (Yes I worked for Shell.)

I think we do need to tax windfall profits from Putin's war made by energy companies on their activities in the UK (e.g. N Sea). It seems only right to recycle those unexpected profits back to alleviate real hardship among the poorest in society. What's more I feel sure that people like Ben van Beurden almost expect it. But don't expect him to volunteer for it: he has a duty to his shareholders. Also, bear in mind the UK government has no right to take profits earned on business in other countries and use that to help UK consumers. So let's look at UK-earned profits rather than global profits. But subject to that restriction, I'm all in favour. (I don't buy at all the argument that it will put off investment in renewable energy. It would be an emergency measure, necessitated by wartime and would not weaken the economic case for renewable investment that existed before Putin turned off the gas, as the tax would be on extra profits that were not part of that pre-existing economic case.)

Re defence industries, we need these to be healthy and productive more than ever, now that we are sending military supplies to Ukraine on a big scale. Now is, in my view, not the time to penalise armaments producers for making stuff that defends democracy and the freedom of nations.

As usual excellent arguments and comment on Shell noted.However do note defence profits are artificial.USA UK and Europe are pumping in defence aid.All tax payers money.The latter is a powerful argument for windfall taxes on defence. If as is very possible Trump gets in this defence spend will be reversed at least in the US.However agree defence has off shoots in research and keeps people in work