Labor to revive mining tax?

imgres

From The Australian:

…The Opposition Leader and Mr Bowen have conceded there were mistakes in the creation of the mining tax, which has raised a fraction of revenue forecast, and undertaken to widely consult the resources sector and improve the implementation of any impost.

…Yesterday, Mr Bowen made it clear Labor was not going to support the repeal of the MRRT, was tied to a mining tax and would revise the tax before going to the next election.

“We’re committed to the principle of taxing the minerals under the ground, and taxing the wealth created by them, and distributing that wealth fairly,” he told The Australian.

I’m not sure how much of this is shit-stirring by the Liberal propaganda sheet in the lead up to the WA senate election rerun but I hope it’s true. A simple mining tax, such as that designed by Saul Eslake, is a must economically and a vote winner to my mind.

11 Responses to “ “Labor to revive mining tax?”

  1. Pat20 says:

    Eslake’s proposal for a differential company tax rate for miners and non-miners would be more complicated than it sounds (eg diversified businesses would need to apportion expenses between mining and non-mining activities).

    That said, now that the mining investment boom is over, perhaps its time for a higher company tax rate to capture a greater share of the profits that will now flow. Introducing faster depreciation provisions for businesses generally would offset the impact of the higher rate on new investment by non-mining businesses.

  2. 3d1k says:

    Slow learners. Once repealed, abandon.

    • The RSPT is sound economics. It is identical to the Petroleum Resource Rent Tax now in place some twenty years.

      I am financially harmed and my life diminished by the mining industry’s actions to defeat good public policy. I am injured by the tax system that gifts Gina and Twiggy a free ride.

      We all know Australia’s tax bases are very bad. Yet the mainstream narrative is it is too hard to fix. We submit. And 2D earns a salary. Sigh.

      • 3d1k says:

        Great news David!!!

        In our pampered society where many succumb to the role of playing victim rather than getting on with the diversities of life I am delighted to free you from your self imposed sentence.

        Fanfare please….

        Your life is enhanced by mining – modern existence impossible without it.

        Rather wonderful.

      • The RSPT does not discourage mining, unlike state royalties.

        The ‘Good News!’ you proffer would be even greater under this superior tax regime.

        I am under no obligation to thank the excavators for a gift of nature.

        The failure of successive Australian governments to take the sound advice of Treasury victimizes every citizen, including the miners.

      • 3d1k says:

        Lol. Count me out of your victim mantra!

      • 2D, your employment is part of the deadweight loss poor tax laws impose. You too are a victim. You are deflected from a productive job driving a forklift.

      • 3d1k says:

        Even that a skill unlikely to be mastered by many an aspiring politician. Talk about unproductive deadweight loss.

      • Politicians are selected by voters. We delegate to them the task of governing. They are poorly paid for the responsibility they carry. The deadweight loss resides in characters like you whose very existence is predicated upon your ability to deflect decisions from sound economic bases for the benefit of sectional interests.

    • glamb says:

      And that is the problem. A mining tax, done correctly, is the biggest no-brainer tax in Australia’s history! But Rudd stuffed it up. And the LNP are funded by the big mining companies (and think-tanks like the IPA, who are funded by big mining companies) so they HAVE to repel it.

      Madness.

      • AB says:

        “A mining tax, done correctly, is the biggest no-brainer tax in Australia’s history! ”

        And probably the most popular tax ever. And yet Shorten is vacilliating about it. Spineless and faceless (in that order of strength).