If we had properly taxed minerals during the boom then we'd have
a much lower level of debt now; quite likely half.
Those who have argued and still argue that we should not tax
minerals should now answer where Trillions of dollars have gone
from 2000 to the present day. I'll tell you. 75% has been sent abroad
and this %age is increasing yearly due to foreign ownership.
Take our big two miners, BHP & RIO, for example, they are
majority foreign owned.
IMO, we now have 2 options:
(a) put a 5% Commonwealth tax on all minerals
or
(b) Legislate a deal similar to Indonesia whereby all
foreign owned mineral enterprises will have to
divest ownership to an Australian entity to 51%
over a 12 year period.
At present we have a dogs dinner of State Based royalties
where resource rich states, particularly WA gave away
resources for a song up to recently.
Given that we provide the lions share of seaborne Iron Ore and Coal
then we should call the shots and not let resource poor countries
like Communist China cap prices.
We fought Japan in WW2 and Communist China in the Korean and
Vietnam wars and now we kowtow to them as if we are their servants.
We have what they want so we should not let them bully us into
selling iron ore at $50/ton and coal at $40/ton.
All we have to do is cut back production by 10% in both IO & coal
and prices will be above $80/ton within a few months. Why should we sell
2 ton of coal for $80 when we can get $80 for 1 ton. And the same with Iron Ore.
If our trade minister and foreign minister gets off their comfortable seats
and cut a production deal with Brazil we can simply be IO price makers and not
price takers. In 2009 Brazil tried to impose a resource tax on IO similar to our
MRRT but conservative forces there backed by Vale knocked it on the head
similar to what the Abbott Government done here last year.
Now that the miners have had the MRRT and the CO2 tax removed, they are
advocating a lift in the GST (a tax that individuals mostly pay) and which exporters don't pay;
in fact any GST paid by miners on their inputs is refunded to them.
We simply do not need more tax; we need corporations to pay their fair share of tax
rather than shunning it by employing scams such as transfer pricing etc. We provide
infrastructure, free education to Grade 12 and legal/policing force so that they can
have well educated workers and secure investment environment but these corporations contribute
less that they do in third world countries where governments there do diddly squat except
canvass corrupt payments.
The ATO in 2009 found that 68 out of the top 100 companies operating in Australia
had a presence in tax havens or anonymous overseas bank accounts but neither
Labor or the current Libs will give the ATO teeth to collect this avoided tax.
Perhaps in ten years time and when we are in dire straits like Greece, we'll
wake up and hit the streets. Governments since the GFC have been complacent
about living above our means because we as taxpayers are also complacent
and have this silly notion that we can continue to live above our means
on the credit card. Just look at private debt as well as our sovereign debt?
