[scotty79]

> Corporate profits are often seen as an adverse result; of consumers being taken advantage of unfairly.

What is it then?

I think it's a clear sign that competition doesn't work and savings were not passed to consumers. The thesis that competition will work eventually reeks of trickle down economics.

Such tax is just punishment for the lack of competition. It sends a message that if you are not going to compete for the customer then you can't keep the profits gained from your reluctance to compete.

[ilyt]

Well, exactly right.

The competition only works if competitors are willing to give consumer a better deal, and if moving between competitors is easy enough.

But if they decide "well, media say there is inflation so we have excuses to rise prices far higher than actual rise of costs", well...