analysis, or emotion> - you choose, page-46

what really worries me about this tax is the lasting PERCEPTION of investment in Aust.

Because, even if Rudd backflips, and the proposed tax never eventuates, the mere fact that the Aust Govt proposed it in the first place, will leave a nasty, bitter, and lingering taste in the mouths of the big investors.

Now, even if the tax is abandoned, evry big investor is going to fear a resurrection of this new wealth tax - and will weigh that new COUNTRY RISK in their investment consideration.

Believe me, when I say PNG has a country risk, and now AUst has one too.
Even when the financial risks, operational risks, employment risks, offtake risks etc are "boxed", the "country risk/political risk" cannot be "boxed", and now the big boys will always have that fear.

Probably the only way to calm that fear, is to get rid of the Labor Govt - but that memory will linger.

Isn't this wealth tax shades of the Whitlam era?