Profitability taxes

Heavy Crude Oils. Heavy crude oils are produced in California. Production problems have been related to air pollution from the generation of steam used for flooding and refining the heavy, high sulfur, crude. Additional development may, however, be expected following the decontrol of prices on crudes up to 20° API and the exemption of crudes of 16° API and under from the windfall profits tax. It is expected that output additions will be 65,000 b/d in 1981 and 130,000 b/d by 1983. The goal is to double output from... 

The public sector presently leaves almost all drug development to the pharmaceutical industry. Clearly, industry incentives drive investment almost exclusively toward developing drugs that are likely to be marketable and profitable. Tax incentives and patent protection are geared towards this market-driven private investment. 

This would avoid the risk of regulatory intervention (e.g. in the form of some kind of windfall profit tax)... 

The Senate version of the Windfall Profits Tax bill would extend the exemption to the year 2000. This exemption provides a subsidy equal to 40j per gallon of ethanol. In concert with the tax credit discussed below, it is the most important incentive available to accelerate alcohol production and use. 

Year Regular tax rate, % Effective limit with wartime excess-profits tax, %... 

During times of national emergency, certain types of business concerns can realize extremely high income and profit. This is true in particular for concerns producing military necessities during wartime. An excess-profits tax may be levied, therefore, to supply the national government with part of these profits. 

The system for determining excess-profits taxes is extremely complex. In general, the amount of the tax is based on the normal past earnings of a concern or on the total capital investment. Special provisions are made for new corporations or for concerns which do not have a normal past history to use as a basis. The excess-profits taxes are very unpopular with businessmen, and there is always considerable opposition to the levying of these taxes. 

The profit made by the plant is usually subject to taxation. Different tax codes apply in different countries and locations, and the taxable income may not be the full gross profit. Taxes are discussed in more detail in Section 6.5. The net profit (or cash flow after tax) is the amount left after taxes are paid ... 

As a sidelight, there are also other factors not directly related to design, material, or manufacturing that figure into the product selling price. These factors include labor fringe benefits, supervisory and management labor, research and development, property and rent, insurance, profit, taxes, and so on. 

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