People in glass houses...

Tuesday, 22 June 2010 09:55

Here is a good editorial piece which shows why the Government is being hypocritical. ComeOn opposes the Rudd Super Tax, but we're independent of both the big miners and the big Government. We can't be bullied by either.

Our opposition is based on what sensible economists and practical business people with runs on the board are saying. Working families know that if you suck $9bn a year extra out of our largest export industry, it hurts all jobs - direct and indirect.

Comments  

 
+1 #1 Dave 2010-06-22 15:20
No, if you tax mining an extra $9bn, and spend this on infrastructure, and tax cuts for small business, you grow the economy, and this helps create jobs.

Particularly if the tax is formulated so it increases as the profitability of the mining industry increases, and helps by picking up 40% of any losses, thereby reducing risk.
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0 #2 Gobsmacked 2010-06-29 17:23
Problem is Dave, your premise is wrong. They are not reinvesting the money and you forget the upfront economic impact both financially and in terms of sovereign risk.

if the tax deters investment then you lose up to three times that value in the economy as the economic multiplier effect is up to 3 times. And of course the Government is not spending that money on infrastructure. Less than one third the funds gained are being reinvested as the Government claims. Most small business are unincorporated so won't get the company tax decrease.
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0 #3 Sense & Sensibility 2010-07-02 06:43
"sensible" economists and "practical" business people are "sensible" and "practical" in the sense that they work for the mining industry and their bosses don't want to pay more tax. The hundreds of economists and opinion leaders who do support the RSPT aren't pie-in-the-sky or stupid; they are genuinely interested in ensuring that Australians get a fair share of the hyper-profits that are currently going overseas based on extraction of a non-renewable resource.
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0 #4 Gobsmacked 2010-08-03 15:17
As it works out the impact of the RSPT was much bigger than Sense and Sensibility acknowledged. what we now know is the numbers were fudged and the deal with the big miners gives them a tax shelter while denying smaller miners much needed finance. No finance, no project, no profits no company tax or MRRT. Good thinking guys.
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