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it's surprising how some people call themselves investors but don't know simple math (not directed at you Ausprop, but the author of the paper)
in the first example the guy gives the numbers are:
Now i've highlighted the important bits.
In the first part of calculation, where he calculates profit before tax, he includes royalty. Then in the calculation of total tax he uses the same amount as a base for calculating percentage, which already had royalty subtracted. And then includes royalty again in the percentage.
So the real percentage of overall tax should've been 38% with the current tax rate.
How do you end up getting the $15 mil to be 8%? The total tax paid is still the 57 mil and they get to keep 86 mil (123 - 37)
In the example with new proposed structure we see the same mistake again. If you add the super tax and royalty back onto the base to get same 138m before tax profit, you will see that the percentage is not 64% but 57%
This perfectly shows how interested people can manipulate those who don't bother to do their own calculations.
in my opinion they should just increase the export duty on all the resources
force them to process it all here and sell a product rather than raw materials
The Carbon Tax idealogy was a more broad based way to distribute welfare. That wasnt going to come off so now we will have a go at this method
And fancy ideas about govt sharing downside risk are just that - fanciful. Hard to bring back a mining company from the dead when their only project just went belly up - being half dead with a bucket load of tax credits is pretty cold comfort... So in reality this just removes upside and that's it.
As per my embedded question.
Cheers
his interest is common with ours tho - just an investor
them - the government. last time i checked, miners weren't in control of export duties.Them..?? Who's them? The miners?
Miners dig up raw material. It's not the miners job to value add.
Why don't you go and build a factory and make something and export it then, if it's so darn easy and simple?