In a survey published by Scioto Analysis this morning, 15 of 26 Ohio economists agreed a windfall tax on the excess profits of large oil and gas companies – with the revenue rebated to households – would be an efficient way to provide temporary relief for the average household in Ohio from rising energy costs.
Of those who agreed with the statement said that the tax would reduce consumption of petroleum in favor of other goods and that this approach was more efficient than other forms of taxation. Others pointed to alternatives such as elimination of oil subsidies and reduction of market power of producers.
Of those who were uncertain, disagreed, or had no opinion, some economists argued a windfall tax would make energy more expensive. Others argued it would be difficult to determine what constitutes excess profits. Still others worried that a tax in times of excess profits would imply a subsidy for a time of low profits, which could cause problems for other reasons.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.