Showing posts with label mining. Show all posts
Showing posts with label mining. Show all posts

Friday, September 10, 2010

Andrew Wilkie Is Mad to Want a Tougher Mining Tax

Andrew Wilkie the Independent who gave his support to the Labor Government is quite mad in trying to force a tougher mining tax on the country. He obviously heard the Green leader Senator Bob Brown say the tax should be higher. But Andrew Wilkie does not do his sums well. The Labor Government can pass legislation without his vote. It has two votes to spare under the Deputy Speaker no vote system. While not supporting the tax in its present form Andrew Wilkie would probably abstain. The problem for Labor is that Tony Windsor has assumed that the mining tax will be reviewed at the tax summit next year. Treasurer Wayne Swan obviously doesn't have a choice. The tax will have to be reviewed.

What hasn't been discussed is whether the mining tax will be passed by the Senate. The Labor Party needs the support of all five Greens the Independent and the Family First Senators to get the new tax through. However, if the tax is held back until next year's tax summit Labor will only need the Greens. Bob Brown could demand a tougher, wider tax. Rob Oakeshott and Tony Windsor probably won't accept that. While Tony Windsor voiced his support for the tax while making up his mind after the election he would prefer changes that make for a somewhat lighter tax.

Problems surely lay ahead for the current government. Prime Minister Julia Gillard will consult all parties before introducing contentious legislation there is no doubt. She is a natural negotiator, far more so than Tony Abbott. Whether Labor can put up with the ongoing "wishful talking" by the Opposition for the Government to fail is another issue. Since the election some Blogs and newspapers have become emotional when writing about the way the present government came about. Much is being said that will be regretted later. The argument between Bob Brown and the The Australian is a case in point. Surely The Australian editorial about destroying the Greens is pure emotion. The article is clearly wrong in saying that neither Bob Hawke nor Paul Keating would have entered the new governmental alliance. They would have agreed to it out of necessity.

Australia is heading in a new direction. Time will tell if the bush gets more money and the wants of the minority win out over the prerogatives of the majority.
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Thursday, July 29, 2010

Coalition Election Campaign Paid for by Mining Companies

Australia's new mining tax gets support from Nobel prizewinner Joseph Stiglitz. He says mining companies have too much say in Australian politics. This is particularly the case when one sector of politics, namely the Coalition, gets free adds for its re-election to government. The only way to "equalise" this situation is for unions to dig deep and pay for Labor ads. It is obvious who has more to spend - the ones who owe back tax to the Australian people. Over the last few years output and income has gone through the roof for the mining industry.

If the Coalition wins office then Australians will pay the tax foregone to mining companies. Executives will be driven in luxury limousines to the bank to check their bank balances. Then on the way home they will check in for $1,000 meals paid for by their mining companies, out of income before it becomes profit on the books.

Promises have been made on cutting company tax on businesses. But where is the money going to come from? It will come from higher income taxes on the majority of Australians.

Will Tony Abbot break the unwritten rule of new governments - never remove a tax put in place by an earlier administration. Labor condemned John Howard for introducing the GST. Yet it wasn't removed when Labor won government.
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Wednesday, June 23, 2010

The Mining Tax and Bank Tax Are Similar

Is a bank tax the same as the Australian minerals tax? Mining companies are playing a dirty game by paying Olympic stars good money to say the mining tax is bad for the country. There isn't much doubt that such a tax is tremendously beneficial to the Australian economy. This is because other countries will quickly follow suit and bring in their own mining tax.

Olympians who go for the money will soon lose support of the community. This has happened in the past when celebrities let their political leanings been known. Straight away half the population doesn't like them anymore. If you belong to the public there are certain things you should keep to yourself. People have long memories.

Not much is being said about the new bank tax proposed by European countries. However, this is much like the Australian minerals tax. There are dangers there for European countries. If the US doesn't bring in a similar tax, banks will re-register there to avoid paying the tax. Perhaps that is why the banks are relatively silent about the whole issue. They could be waiting for an outcome, then jump off the ship and take off in the lifeboat.

Another issue is, who is going to police what governments do with the proceeds of the bank tax? Such a large amount of residual money is a temptation to at least "charge" a fee for looking after it. And the banks have no say in what governments do with the money. Let's face it, it's really a huge tax ripoff. We may not have another financial crisis for fifty years.

There certainly is a similarity about the bank and mining taxes. I wonder why the banks are so quiet?
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Thursday, June 10, 2010

Australia Is Leading the World in Wealth Redistribution With Its Mining Tax

Does Australia need a mining tax? The world needs a mining tax. Other countries are watching what is happening in Australia. If and when the tax is brought in these mining countries will follow suit, so mining companies will not have the opportunity to move offshore.

Look at the people who head the mining companies. They are not millionaires. They are billionaires. The tax won't hurt them one iota. When CEOs say they want the Government to stop bailing out small companies that fail in order to withhold the tax on them so that their children won't pay the cost, they are lying through their teeth. With the billions of dollars that they leave to their children their offspring will never want for anything.

If the Coalition wins the next election where are the funds coming from to help the not so well off and small business? Spending will be cut. This is a reality. In Germany spending has been cut. Guess who has been hit? Opposition parties are saying it is an unfair redistribution of wealth. In Britain cuts are going to be made to the poor. Australia should lead the world in wealth distribution, not follow what others are doing. Anyway, spending cuts means mass unemployment, falling prices and recession. That is what is going to happen in Europe.
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