Darron CharlesworthMiner's cry wolf on Super Profits Tax
May 16th 2010 01:31
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The arguments surrounding the possible introduction of a Super Tax on mining profits ring a little hollow. This kind of posturing by the mining industry is not, and should not, be altogether unexpected. Let’s face it, any industry will cry foul if the government tries to increase its grab of their profits. That is however the only argument the mining industry can legitimately put forward: that it does not wish the government a higher share of its astronomical profits.
The threats of reduced employment and investment from miners should not be taken too seriously. The industry knows all too well that there is a vast fortune still to be made from Australia’s resources. The last thing they would want is to share in that wealth. This is unfortunate. The mining industry could easily afford to share its wealth with the Australian people with hardly a ripple in their progression strategies. What they will do is spend many millions lobbying Ministers and spruiking the evils of paying more tax to avoid giving a penny more to the taxpayer. Don’t be fooled.
It is no surprise that Tony Abbott and the Liberals oppose this kind of impost. The Liberal ideology is based on reduced regulation and fewer obstacles to industry and individuals increasing their wealth. It is sad that the bluff and bluster from the mining industry has also gained the support of Labor political leaders such as SA Labor’s Kevin Foley.
The benefits of such a tax to the public would be limitless. Personal tax could be reduced and more money could flow to essential services like education and health without the need for increases in other taxes. In fact it could open the door to extending the Super Profits Tax to other industries: industries that relentlessly plunder the public to the tune of Billions annually. The Banking sector is one which immediately springs to mind.
In fact the Banking sector is more worthy of the burden of a Super Profits Tax than the mining industry. The miners dig up a resource which costs them very little to access and makes a profit for doing so. The Banks have a very different profitability source. Banks take money directly from the pockets of all Australians. Whether this is ongoing account fees and charges or interest on loans and credit cards the Banks profits come from you.
Making this even more deplorable is the fact that every Australian regardless of being a wage earner or a Government benefits receiver is required to hold a bank account to access their money. This means that nearly every Australian is forced to contribute to the profitability of the big banks like it or not. Would it not be fair then for the Australian Government to demand a greater share of their exorbitant profits?
The debate on a Super Tax for the mining industry is not over yet. Expect more unfounded protest from the industry and its multi-billionaire owners in the future. Our politicians need to remember that they represent us – the Australian public – and not the mega-rich mining barons or banking tycoons. Any politician defending these corporate giants might want to question their values and motives before they forget that.
The threats of reduced employment and investment from miners should not be taken too seriously. The industry knows all too well that there is a vast fortune still to be made from Australia’s resources. The last thing they would want is to share in that wealth. This is unfortunate. The mining industry could easily afford to share its wealth with the Australian people with hardly a ripple in their progression strategies. What they will do is spend many millions lobbying Ministers and spruiking the evils of paying more tax to avoid giving a penny more to the taxpayer. Don’t be fooled.
The benefits of such a tax to the public would be limitless. Personal tax could be reduced and more money could flow to essential services like education and health without the need for increases in other taxes. In fact it could open the door to extending the Super Profits Tax to other industries: industries that relentlessly plunder the public to the tune of Billions annually. The Banking sector is one which immediately springs to mind.
Making this even more deplorable is the fact that every Australian regardless of being a wage earner or a Government benefits receiver is required to hold a bank account to access their money. This means that nearly every Australian is forced to contribute to the profitability of the big banks like it or not. Would it not be fair then for the Australian Government to demand a greater share of their exorbitant profits?
The debate on a Super Tax for the mining industry is not over yet. Expect more unfounded protest from the industry and its multi-billionaire owners in the future. Our politicians need to remember that they represent us – the Australian public – and not the mega-rich mining barons or banking tycoons. Any politician defending these corporate giants might want to question their values and motives before they forget that.
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