...something for nothing...

Siren voices have been calling for windfall taxes again - we can get some more money for good purposes by taking it from "them", this time from the energy companies. So far the Government seems to have resisted them, and instead has leaned on the companies to give energy saving grants to older and poorer people, although these "leanings" are virtually the same as windfall taxes in their effects on the companies. (Of course, as has been pointed out a one-off temporary fuel price subsidy would not be as good as the permanent provision of insulation, which would reduce the energy cost of the consumer for years to come.)

There are always unforeseeable effects of windfall taxes, but enough is clear to make the idea seem worrying.

"They" are in fact us. If we are not wealthy and rely on shares in energy companies for our income or for the pension funds which provide our pensions, then we may be be taking from the poor to give to the poor in some measure.

Even if we control "them" with regulation, then they will certainly react to the imposition by reducing costs and/or investment even if they can't put prices up. The long term could thus be threatened.

One of the problem with windfall taxes is that they are "after the event", that is retrospective, plans were made in their absence and throw company plans into confusion, with companies affected differently because they are in different business phases.

Why hit "them" alone? Why not overpaid footballers who receive huge signing on fees and shares of transfer proceeds because they change club unexpectedly. Why not artists whose work suddenly becomes popular, or authors, or inventors? In fact why not all "sudden" incomes? We know why - it would discourage enterprise and risk taking. So if it is done it cannot be done on a regular basis.

If you tax away some windfall gains, will you compensate the tax payers in days of windfall losses, or pay back the taxes taken?

It is a short term policy with unpredictable long term consequences, and it is one that is selective and attacks "them" only.