“Under the plan announced today, Australia will have the highest taxed mining industry in the world,” Minerals Council of Australia Chief Executive Officer Mitch Hooke said in an e- mailed statement. “Australia’s hard-earned reputation as a stable investment environment will be dramatically undermined.”
The government runs the risk of “taking away from Australia the strongest industry we have and the one that saved us from the global financial crisis,” saidKeith De Lacy, chairman of Brisbane-based Macarthur Coal Ltd., the world’s largest producer of pulverized coal. “Always 50 percent of our net profits went into development and exploration and so much of that is going now so obviously we’ll grow slower.”
The introduction of the resource tax would cut Australia’s competitiveness, Citigroup Inc. said on April 28 before the release of the review. Mining companies’ tax burden currently stands at 35 percent, Citigroup said in its report last week.
Chinese and Indian demand for resources from Australia, the world’s biggest exporter of coal, iron ore and alumina, helped the A$1.2 trillion economy skirt recession during the global financial crisis. China is the nation’s largest resource customer.
Rudd’s Labor government, which has led the opposition Liberal-National coalition in opinion polls, commissioned the tax review two years ago to create a simpler and fairer system to meet the needs of a growing and aging population. One quarter of a projected population of 36 million will be aged 65 and over by 2050, increasing pressure on roads, rail, ports, schools and hospitals.
The government will use the resource tax revenue to create a A$5.6 billion infrastructure fund, cut company taxes to 28 percent in mid-2014 from the current 30 percent and boost retirement funds.
Connecticut Senate passes TARP “bonus tax” If not this year, next.
Connecticut lawmakers have approved a bill imposing extra taxes on bonuses paid to state employees of investment banks and insurers that received federal bailout aid during the economic crisis.
The House of Representatives approved the bill 89-49 early Sunday, and the Senate had already approved it Friday.
But it’s doubtful it’ll become law. Republican Gov. M. Jodi Rell is expected to veto it, and bill did not pass the Senate with enough votes to override a veto.
It sets a two-year, 2.47 percent surcharge on any bonus totaling $500,000 or more.
Democrats say the tax liability would be lower than what’s imposed in neighboring New York, but Republicans say it sends the wrong message and could be ruled unconstitutional.
No one gets it, until it’s too late.