Tuesday, June 01, 2010

media manipulation

[still under edit] [updated Friday 4 Jun]


Um, ya don't have to trust, nor believe me buuuut . .. had a whle series of 'economic' analaysses? anallasises? .. someone who looks at numbers in detail?

(under edit .. just found some links. One's labelled 'winners and losers' and looks at the "misnamed" "super"-tax.

I still can't figure out what all the HOO-Har is about.


Who, then, are the winners of this tax? They include:

  • Mine workers and mining communities. The long-run level of activity should go up, and the pressure on their wages and employment relations should go down.
  • The general business community. Non-mining activities are taxed less because mining profits are taxed more, meaning that in general, businesses win out.
  • The general public, simply because they can expect to benefit from reduced taxation and receive parts of the services bought by this tax.
  • The economic system, because this kind of tax is very dependable (minerals can’t run away to foreign countries and hence the tax can’t be avoided), making the public finances sounder and more reliable.

Who are the expected losers of this tax? They include:

  • Shareholders in mining activities in Australia. When they bought their mining shares, the shareholders expected to receive a certain flow of profits, and that profit stream is now taxed more, making shares in mining less valuable. These losers include domestic shareholders and foreign shareholders, such as major Chinese interests in Australian firms and foreign shareholders in mining companies operating in Australia. To a certain extent, the RPT means Australia is grabbing in the coffers of foreigners to the benefit of its own population.
  • Shareholders in mining activities outside Australia. Many countries are facing the problem of how to tax economic activities without reducing the level of economic activity, and Rent taxes are recognised as being pretty close to the economic textbook ideal as to how to do it. Hence other countries will no doubt follow suit if Australia pulls it off. This makes international mining companies understandably nervous.
  • Other holders of fixed assets within Australia. This tax of course establishes the principle that assets that cannot run away might witness an increase in the taxation of the income generated by those assets. There are quite a few other sources of rent that could in principle be treated similarly, making owners of fixed assets justifiably nervous. Land, in particular, would be a prime long-term target for tax increases.
UPDATE: This from another article (ABC "The Drum"
..and i still can't figure it all out, no wonder the Multinational Mining companies are winning the PR war.

.. this other stuff was written first.
Lets look at the emotional impact of hearing that there is a "great big tax" on your "super" (shorthand for "superanuation" - the stuff one parks away for the time when one is not quite able to battle the whims and wherefores of "commerce" and "territory".

Mis-named .. or from a different viewpoint .. named.

Have heard many arguments and discussions ..

but, at this point ..

my question is ..

controls the destiny of the 22-3 million persons who live in an environmentally fragile island in the South Pacific now known as Australia???????????????????????????????????????????????

Multinational corporations with a few billions worth of "profit" to throw away?

Elected representatives in a Federated commonwealth Parliament?????

UPDATE: more longish reading

And someone has been doing some work to sort it all out Mining Tax facts


Davo said...

.. and if anyone is silly enough to come up with GOD, god, Allah or yaweh .. piss orf. anyone with half a brain and the ability to read (ah, debatable point .. can only read anglaise translations). Jupiter, Zeus, Mithras ...

I live a life. No more, no less.

Vest said...

I am reasonably provided for, but its the big 'D' I am more concerned about rather than taxes.

Where you off to now?