Miners’ taxes pay for PM’s follies at Catallaxy Files

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Miners’ taxes pay for PM’s follies

In today’s The Australian (subscription required):
“Last Tuesday, Martin Parkinson, the Treasury Secretary, used the annual post-budget address to examine the uncertainties in the economic outlook. While his speech was wide-ranging, one component stuck out: the suggestion that the rapid growth of mining was “dampening tax receipts as a share of the economy”, with “the accelerated write-offs provided for many mining assets” being “of particular importance”. “

Written by Henry Ergas

May 21st, 2012 at 3:25 am

Posted in Uncategorized

3 Responses to 'Miners’ taxes pay for PM’s follies'

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Well it will be interesting to see what they say when the mining boom is pronounced over, and it fails to deliver the project pipeline Wayne Swan kept talking about. No doubt tax receipts will be up, the patchwork economy will be less patchy and everything will be fine.

I bet the ALP blames the end of the resources boom for a collapse in tax receipts. My guess is that the resources boom has ended. My sense is that Wayne will say that the end of the resources boom, which no one could predict, ate his surplus.

John Comnenus

21 May 12 at 6:51 am
John,

Spot on – we have a bellweather called “critters”, dodgy entrepreneurs who finally emerge out from under their rocks, to take advantage of the boom. These always appear at the tail end of any commodities boom.

Well the critters are out, and many small cap. exploration companies, the lifeblood of future mines, are finding risk capital has dispappeared.

The real problem is that it always was an iron ore mining boom, not a mining boom.

Other signals are unsolicited offers for credit cards etc – or spruikers offering exhorbitant returns on funds “if only you would invest with them”. Bollocks – like critters these all signal another bust on the way as the final flood of cash from the latest credit expansion washes into the economy.

They just don’t get it.

Louis Hissink

21 May 12 at 12:11 pm
What about gold and coal, Louis?

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22 May 12 at 7:20 pm

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