Bad Medicine: The Windfall Profits Tax

Although it appears that President Obama has tabled his plan for a Windfall Profits Tax (WPT), the American Petroleum Institute decided several weeks ago to commission a study on the likely effects of a WPT on consumers and the economy. The findings indicate that the WPT -- or a similar tax -- would cause major job losses, a sharp reduction in household income, and would worsen our economic woes. In other words, such a tax would be exactly the wrong medicine for our ailing economy.

Want more information? Listen to the podcast featuring W. David Montgomery, vice president of CRA and an author of the study, and John Felmy, API's chief economist.