Italy shocks banks with 40 percent windfall tax for 2023

Re:Italy shocks banks with 40 percent windfall tax for 2023 by nomaD_ on Wednesday August 09, 2023 @06:19AM (#37060662)

The idea that banks are private companies in any country is not entirely true. Everyone knows that if a reasonably big bank fails, governments will intervene to protect people's money.

Banks are technically private but won't be valued as much without government protection. So, to some extent, it's not wrong for the government to tax them more than other private companies.

However, a negative consequence of this tax it reduces the bank's incentive to lend money to small and risky companies/startups. This is equivalent to increasing capital gains to 40% - why invest in risky assets if I know I will ever only receive a small percentage of my profits (if any)?

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Re:Italy shocks banks with 40 percent windfall tax for 2023 by thewildginger on Wednesday August 09, 2023 @08:22AM (#37061569)

I hate this argument. Business owners don't say "40% taxable gains? Guess I will never make money again" It may surprise you but no matter the restrictions put on size of profit, people will still attempt to make a buck. All that changes is the strategies used and the amount of time REQUIRED to strategize. All of these things sound so horrible, but when most people all over the world won't ever be in a position to think about it, I'm less sympathetic.

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