Resources tax mess

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Henry Ergas explains what’s wrong with the Brownian ‘Resources Super Profits Tax’ (apart from the appalling, ideological sniping at foreign investors).

“Unfortunately, we have a long history in this country of interventions that, were they capable of perfect implementation, might increase welfare. Typically, when reality hits, they have the opposite effect. The scientific tariff, which helped ruin our economy for decades, is a striking case in point.

The RSPT, with all of its complexities, risks being deja vu, all over again.” Extract from This tax won’t win any respect | The Australian

I wonder how Chinalco now feels about it’s agonized investments in Rio. According to The Australian

Shares in Australian mining companies shed more than $16bn this week, with heavy falls by BHP and Rio in London contributing to a plunge on global markets overnight.

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