Wednesday, May 30, 2012

Mining tax Australia


Julia Gillard, the Prime Minister of Australia told to the big mining companies at the Minerals Industry dinner in Parliament House that they have to share resources with other companies like car factories, police stations. She told them that they did not hold minerals.

The Prime Minister want a mining tax even if she admired the success of the mining industry. She knows that everyone works hard because global environment is highly competitive, but it is the same situation for other companies like car factories..

So she wants a tax which would allow the State to benefit from massive profits of the mining companies and benefits of growth to spread to all. Chris Johnson states that "the Prime Minister insisted that mining companies would benefit for years to come from much of what the government is now doing".
With the new tax regime, extra benefits will be use to help small factories. This tax will allow to distribute the profits of the mining sector in the other sectors of the Australian economy with a decrease of the corporate tax, an increase of the pensions.
All the mining industry says that « this super-tax » would have an extremely negative impact on investment in the sector of raw materials in Australia, a sector having key importance for the economy of the country.

In my opinion, it is a brilliant idea. With the economic crisis, when a factory make a lot of extra profits, it is normal if they pay more tax. I have a lot of friends in Australia, and they really want this tax. A lot of countries have this tax like Indonesia, Finland.
I can understand that investors are scared, but during this difficult period, it is essential to share and to help small firms. I think that the Australian economy is a model for many countries.

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