40% Tax

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Originally Posted by Chucaro

Only need to see the kids in the Hunter Valley schools with repiratory diseases, the increase of brain tumors, the local Doctors in the area leaving the districts because their own kids are sik.
Just wonder if the water table in the region is pure and healty for the Central Coast population :angel:
I rather be poor but my kids healthy.
What many miners are doing here in Oz it is the same that the other greed companies are doing in Brazil. :(

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Take the mines out of the Hunter Valley and you will see a lot more illness like alcohol abuse, suicide and the other problems with unemployment.

Rudd is kidding. The banks make obscene amounts of money from other peoples hard earned. At least the miners are producing a product that has got this country out of the stook for the past half a century.

Tax the crap out of the banks and legislate so thay can't just pass it onto Joe Citizen and family.

http://www.smh.com.au/business/the-r...0511-usnu.html
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Let me know if anyone has a view counter to this or debates any of the facts presented. Given the tsunami of rhetoric coming from all sides I thought it was time for a post on the facts.

MYTH:

The "super-profit" tax will tax miners a total of 40% on profits above the 10 year bond rate (5.7%)

FACT:

The marginal tax rate on all miners who make a super-profit is 57%

For example

if revenue = $100 and

Expenses = $50

Your profit = $50

You can then subtract depreciation, with the allowance - set at 6 per cent.

So if RSPT allowance = $3

You are left with $50 - $3 = $47

The $47 is taxed 40 per cent (the super tax).

So $47 x 0.4 = $18.8 and you are left with $ 28 .20

The $28.20 is taxed again at 28 per cent (the company tax).

So $21.20 x 0.28 = $7.90 and you are left with $20.30.

That adds up to about a total tax of about 57 per cent.

MYTH:

The mining tax will be used to fund superannuation increases

FACT:

Whilst the are plenty of government bureaucrats with super to pay, the total annual increment for them is only $250M and all other superannuation is paid by employers (including the mining industry). The cut in the company tax rate is designed to offset this, not the "super-tax"

MYTH:

"this tax is the same as the petroleum resource rent tax and that has caused no issues"

FACT:

It isn't - the PRRT applied only to NEW projects and kicks in only when profits are 5% ABOVE the long-term bond rate. Also the PRRT does not apply to projects that draw state royalties.

MYTH:

"the resources are owned by all Australians"

FACT:

onshore mineral resources are owned by the States, not the Commonwealth

MYTH:

"the super-profits levy was recommended in the Henry review"

FACT:

the Henry review never mentions the term "super-profits" and it recommended a corporate tax rate of 25% and the abolition of all state royalties to allow a resources rent tax. "Super-profits" was first mentioned by Marx is "Das Kapital"

MYTH:

"Miners only pay $1 in every $7 profit in taxes, as opposed to $1 in $3 ten years ago"

FACT:

Rudd conveniently left $80 billion dollars in corporate tax revenue off his figures. In fact, tax revenue from mining has grown 10 fold from $2.6 billion to $21.9 billion over the last 10 years. State royalties vary, but miners currently pay an average of $4 in taxes for every $10 profit they make.

Thanks for that summary, It's good to find out that the total including "supertax" is 57% not the hysterical 70% tax one mining magnate was spruking!

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Originally Posted by Lotz-A-Landies

Thanks for that summary, It's good to find out that the total including "supertax" is 57% not the hysterical 70% tax one mining magnate was spruking!

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Typical confusion of adding percentages of different quantities - the percentages don't add, the quantities do. Innumerate I would think rather than hysterical.

But the tax rate of 57% compared to a tax rate of 28% on, for example, banks' super profits shows exactly what the miners are upset about.

John

Value adding? We mine ore, turn it into pellets as well as raw ore.
Here are the load out conveyor and bins full of export pellets.

Quote:

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Originally Posted by Chenz

Take the mines out of the Hunter Valley and you will see a lot more illness like alcohol abuse, suicide and the other problems with unemployment.

Rudd is kidding. The banks make obscene amounts of money from other peoples hard earned. At least the miners are producing a product that has got this country out of the stook for the past half a century.

Tax the crap out of the banks and legislate so thay can't just pass it onto Joe Citizen and family.

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OH! great let kill the next generation with cancer before thet become addictive to alcohol, and forget to be a bit cretive and create alternative employment.
It is sad.....really sad :(

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Originally Posted by Tombie2

Value adding? We mine ore, turn it into pellets as well as raw ore.
Here are the load out conveyor and bins full of export pellets.

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Tombie, when I come to Australia in 1969 in Port Kembla alone were more then 1200 tradesman working on new projects inside the place plus all the other subcontracting work.
I was able to drive in the Botany/Mascot district alone on sundays and get more than 10 oprions of tradesman jobs to apply next day.
We killed our manufacture base, the skill labor and other good things in this country swapping them for warehouses, and forklifts :(
I do not know if we have to put the balme 100% in globalization but I think that our politician (in both paties) are to balme in a big way.
I remember when Ford closed down the assembly plant in Lidcombe because the wages were too high.
What a lot of crap, back then In japan the workers assembly the Mazda wich compete with the Capri were earning $ 80000 a year.
If our gioverments were proud of their country like the japs are we will have all the industry here.