To suggest windfall taxes

[Meltingpots]

I'm miffed off at the profits banks are earning from increasing interest rates. I'm equally miffed off about the money energy companies have made during an "energy price crisis". I'm mouth wide open about Supermarkets still raking it in. The contempt we are heald in is disgusting.

Should the people of this country be putting pressure on the government to do windfall taxes and use that money to sort the NHS funding they promised us Brexit would bring. I'm sure all that money can be put into providing mental health services for the population they have crushed to breaking point.

I'm just beyond miffed off.

We are not living in a civilised society anymore. We are living in some elitist society where the people in power crush the weakest whilst feathering their own nests.

No, YANBU. I’d welcome price caps, too, which is within the Government’s remit.

Won't anyone think of the shareholders !

What about a shareholder cap 🤔

I'm not a communist
I do think people are motivated by profits, but there should be a limit to it

Especially if societal ills are rock bottom.

There is already a windfall tax on the oil/gas companies.

Part of the problem with taxing banks/financial institutions more is the UK can’t afford for them to leave.

Don’t you understand that shareholders include pension funds? You cap shareholders means less money for those investing in pensions for their old age so they don’t have to rely on top up benefits etc.

Bank profits, remember a few years ago when there were no profits for some? Swings and roundabouts as how often do companies give something for free to the majority of their customers? Or would you be happy to start paying a monthly fee for your bank accounts ( did actually use to happen) all your payments out and in have to be processed by someone and that costs

Food costs, they are dependant on a whole load of things, including the weather, bad harvest, less food cost goes up

its not as simple as take a windfall tax

Broadly I don’t think that it’s for governments to interfere in private enterprise at the level where they take it upon themselves to fix or control profits - and I was fortunate enough to hear a very interesting lecture recently hosted by the CMA with guest speakers from a range international commissions where it was posited that governments doing so can essentially aid in the creation of cartel and antitrust activity, which would be a serious backfire of intentions.

Also to note that interest doesn’t work in real time. Banks consider their own funding costs, which are influenced by factors as diverse as their fixed term financial commitments, overseas interest rates and bond markets, government regulations and the amount of money they hold in deposits. It isn’t quite as simple as them earning huge Day 1 profits from higher rates and thus being able to pass higher rates on to all their savers instantaneously.

I understand the shareholder debate. But as a shareholder would you still be happy to invest if the dividend was capped at 15% per annum? If the rest goes back into society, education, health, roads and public services that will have value to those shareholders as well.

But the shareholders would likely pay income tax on the dividend which also “goes back into society”.. so they’d be taking a hit twice.

I'm all for companies making profit. I'm not into companies that provide essential services like energy making huge profits whilst causing a large portion of people into fuel poverty. I think that stinks.

If the energy companies had tempered their profits it would have not driven inflation so hard.

If banks had passed the interest rate onto savers as fast as they do mortgages it will have not driven inflation so hard. Where is the incentive for savers to stop fueling inflation. All the burden in being carried by debters whilst the banks reap the difference as profit.

Shareholders aren’t just individual wealthy investors rubbing their hands with glee at their personal millions who could stand to lose 15% of their dividend this year. Shareholders include e.g. asset managers who invest in behalf of global pension funds and insurers. Windfall taxes, regardless of whether you support them or not, have global market repercussions which can’t be disregarded as simply “for the good of the NHS.”

@Tinkerbyebye

Don’t you understand that shareholders include pension funds? You cap shareholders means less money for those investing in pensions for their old age so they don’t have to rely on top up benefits etc.

Even some public sector pension schemes are based on shareholdings in FTSE listed companies, particularly local governments. Limits/gaps/extra taxes on listed companies will impact on future pensions.

Gordon Brown did a lot of damage to pension schemes with his tax raid on them, leading to a great number of defined benefit pension schemes closing down and the move away from defined benefit schemes to defined contribution schemes.

Very few listed companies pay more than 15% dividends!

Shareholders aren’t just individual wealthy investors rubbing their hands with glee at their personal millions who could stand to lose 15% of their dividend this year.

That's literally not what the OP said in the post you quoted. She said it would be CAPPED at 15%. Which means if the shares grew by more than 15% they wouldn't get the growth as it would go for a windfall tax. That is completely fair. My best shares on average grow by 10% year on year. 15% is a ridiculous amount of growth. Totally fair.

OP YANBU but with the amount of financial illiteracy in the world coupled with the fact that many of those who actually understand finance use what they know for their own financial gain and to exploit everyone else, it will sadly never happen.

Thanks for clarifying that. That's what I was saying.

Yes and thats what I mean. You can still get an excellent rate of return, but once it gets beyond that then the profit is directed back into society so that value can be added to the country you live in.

I might add I don't follow stock rate dividends. So the 15% figure was a rough figure, but the gist of my suggestion is there.

Interesting you blame Gordon Brown for the end of DB pensions - how do explain the fact that they have been ended in the USA?
https://www.investopedia.com/articles/retirement/06/demiseofdbplan.asp

I seem to remember that actually has/oil companies did get a windfall tax by the government. Banks are a law unto themselves when interest rates go up they are very quick to put mortgages up but slow to increase savings rates and savings rates don't go up by the same amount as mortgage increases. As for the greedy bankers bonuses don't get me started.

Banks are already taxed at higher rates than other companies . Tax them any more and they’ll move to Frankfurt.

That's an easy fix though. If the are in Frankfurt they can't operate in the UK. Banks that are happy with a generoud but capped profit can. Maybe banks who have values like the Bank of Dave (hope that ages well).

I'm also going to say that I would be very surprised if these companies were not making big donations to the Tory party to keep their gravy train going. There is a difference between profit and robbing the people blind in my humble opinion. They know they are taking the piss.

I don’t think it is OK for the banks to increase their profit margins by failing to increase savings rates at the same rate and time as borrowing rates. For that reason, I agree that there should be a windfall tax on them. I thought the idea was to stop spending so surely increasing saver rates would help.

Can someone explain if there are any measures in place to stop supermarkets from increasing prices over and over when wholesale prices are reducing? It does feel like they are pushing us as they know they can get away with it - most people have just accepted the higher cost. At what point, if any, could any sort of governing body step in and stop it?