Mining Tax SNAFU
Wayne Swan is pitching it as “…a way in which all Australians share in the bounty of the mining boom,” but Alan Kohler destroys any illusion of that: There was, and is, a fundamental disconnect between the terms of trade boom that was killing manufacturing and tourism and the tax revenue governments were getting from it because royalties are levied on volume not price. The Henry proposal involved a 40 per cent extra resources rent tax and a reduction in company tax to 25 per cent, plus a series of depreciation and capital allowance benefits for manufacturers and other small businesses. ...