the key to winning next election: mining tax, page-3

The biggest problem with the mining tax, apart from the very messy way the government went about it, is that it is going straight into consolidated revenue.

If we have to have it, Australia would be much better off if it was segregated as a capital investment fund IMO. As it is, it just makes the annual receipts more fragile - going up when the economy is up and down when the economy is down and offering no hedge protection.

Governments love to spend money and there is the risk we will blow all the benefits now.

An infrastructure or rainy day fund would help protect us and could be built up in good times and used to stimulate the economy in future recessions.