Record profits reported by banks, fuel retailers, energy companies and other businesses at a time many New Zealanders are struggling to make ends meet have seen people asking whether it’s time to introduce a “windfall tax” – to be triggered whenever an industry has made “too much profit”.
But what is a windfall tax? How much is “too much profit”? And do windfall taxes actually work? History, it turns out, can tell us a little about taxing a windfall.
