[paraclete]

It's doubtfull that when Krudd imposed a super tax on miners he had in mind that the cash strapped nations would hop on the band wagon, but a very bad idea has gone international, now watch as Krudd finds it opportune or is that opportunistic to do another of his now famous back downs
Mining tax 'contagion' set to spread globally

I know it's not funny but I cannot help but laugh at the ineptitude of the current crop of politicians infesting the corrodoors of power these days:D

What we have now is the next GFC courtesy of Krudd a truly international achievement for the boy from Queensland and all within three years he has wrecked the Australian economy and the global economy

[tomder55]

I love it when people who don't have a clue about an industry decides that they make too much money and propose these idiotic "excess"... or as US politicians like to call them"windfall" profits tax.

Add to this that the proposal reeks of an attempt at a perverse negative protectionism excluding your countries minerals from the global market .

Treasurer Wayne Swan has said he “strongly disagrees” with claims the tax will damage miners. China’s demand for Australian metals will outweigh higher taxes

Well maybe... maybe Swan thinks these greedy mining companies won't add the price of the tax to the price of the product they sell. And maybe the clue-less one just assumes that these higher priced minerals are so attractive to China that they won't shop around for a better deal .And maybe just maybe the Chinese won't retaliate in some way for this obvious trade slap-down. Does he forget that China is the largest source of Australian imports ? Maybe Aussie consumers won't mind taking it on the chin for this folly.

[paraclete]

Maybe Aussie consumers won't mind taking it on the chin for this folly.

We are already taking it on the chin Tom our market is down about 10% as a result of this foolish move and that is a prelude of what it will do to any exporting country that tries it, but the socialists currently in power have no need to worry because they are the true believers, they know that government largesse will cover the hole by paying unemployment benefits

[tomder55]

KRudd is truly amazing . He came in on the promise of one folly (cap and tax) and could be the 1st 1 termer that I know about in Aussie history over this new folly.

[inthebox]

So, let me get this straight, you can tax your way out of a poor economy? Has this happened in the past?

Okay, so they tax mining, their cost of business increases and so they don't hire new workers or they lay off workers - how is that helpful to to the economy? If the cost of providing a service or good goes up, that cost gets passed on to the average person as a higher price. How is higher utility cost suppose to increase consumer confidence or spending? Is that good for the economy? How is a business that now has to pay higher utility costs able to
Hire new workers or be able to keep the ones they have? Is this economically good?

The ripple of bad economic effect will turn into a tidal wave that will further weaken the economy. F... g idiots.


G&P

[paraclete]

So, let me get this straight, you can tax your way out of a poor economy? Has this happened in the past?

Okay, so they tax mining, their cost of business increases and so they don't hire new workers or they lay off workers - how is that helpful to to the economy? If the cost of providing a service or good goes up, that cost gets passed on to the average person as a higher price. How is higher utility cost suppose to increase consumer confidence or spending? Is that good for the economy? How is a business that now has to pay higher utility costs able to
hire new workers or be able to keep the ones they have? Is this economically good?

The ripple of bad economic effect will turn into a tidal wave that will further weaken the economy. F...g idiots.


G&P

You just don't understand the theory, they taxed the oil industry twenty years ago, no new oil was found but exploration found gas, almost as good and bringing plenty of investment. The theory is tax iron ore and coal this will bring massive investment,

In the cap and trade theory this is how it works tax the "polluting" industries and this causes investment in alternative industries or industry pays the tax which is returned to the consumers who have to pay higher electricity prices. Either way there is a huge cash flow headed the governments way and of course they will keep some of it

A few years ago we introduced an new tax called the GST, a consumption tax, primarily to trap those who weren't paying income tax this has been a growth tax far exceeding expectations and the economy has grown at the same time so the theory goes the more you tax something the greater the economic effort

This is the reverse of all logic and economic theory but it is at the centre of Krudd reasoning, why else would it be Krudd? All of this came out of a recent tax review and the government couldn't wait to implement it. As soon as the report was released, the tax was announced.