Windfall gain: Difference between revisions

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Windfall profits are a type of windfall gain. They can occur due to unforeseen circumstances in a product's market, such as unexpected demand or government regulation. Since the profits were unforeseen, some legislators believe that taxing them should not hurt the company. This type of taxation is known as a [[windfall profits tax]].<ref>{{cite web| url=http://www.economist.com/research/Economics/alphabetic.cfm?term=windfallprofit#windfallgains| title=Windfall Profit| year=[[January 1]] [[2007]]| accessdate=2007-03-09| publisher=The Economist}}</ref>
 
Windfall profits are a type of windfall gain. They can occur due to unforeseen circumstances in a product's market, such as unexpected demand or government regulation. Since the profits were unforeseen, some legislators believe that taxing them should not hurt the company. This type of taxation is known as a [[windfall profits tax]].<ref>{{cite web| url=http://www.economist.com/research/Economics/alphabetic.cfm?term=windfallprofit#windfallgains| title=Windfall Profit| year=[[January 1]] [[2007]]| accessdate=2007-03-09| publisher=The Economist}}</ref>
   
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Revision as of 07:13, 16 July 2008

A windfall gain is any type of income that is unexpected.[1]

Types of Windfall Gains

The list of windfall gains includes, but is not limited to:

Uses of Windfall Gains

What people do with windfall gains is subject to much debate. While they differ from one account to the next, most economists hypothesize that the majority of the gains are saved, due to the Permanent Income Hypothesis.[2]

Windfall Profits

Windfall profits are a type of windfall gain. They can occur due to unforeseen circumstances in a product's market, such as unexpected demand or government regulation. Since the profits were unforeseen, some legislators believe that taxing them should not hurt the company. This type of taxation is known as a windfall profits tax.[3]

Bold text==References==

  1. ^ "Wealth Effect". RevisionNotes. January 1 2003. Retrieved 2007-03-09.  Check date values in: |date= (help)
  2. ^ "Windfall Gains". The Economist. January 1 2007. Retrieved 2007-03-09.  Check date values in: |date= (help)
  3. ^ "Windfall Profit". The Economist. January 1 2007. Retrieved 2007-03-09.  Check date values in: |date= (help)