It makes sense. It's a valuable resource that the country should own as a whole. Make it work to improve the country, not just a small group of individuals bank balances
We don't tax corps. We used to. Taxed them 70-95% I can't remember the actual number.
But that's what built the industrial powerhouse that won the cold war. Those high taxes could only be written off by reinvesting into the business. Hiring more people. Raising wages. Buying new equipment. Those high tax rates are what made it all work.
Without those you get Gilded ages like what both proceeded and have followed them. Because capitalism eats itself without a strong government hand at the tiller. Protecting it from itself.
If I understand the argument is that we have no expertise in finding and extracting it, so we have to offer bigger concessions to get anybody to do it.
Which sounds like the wrong solution to the problem, but what would I know?
The moment we discuss resource tax reforms in Australia the mineral lobby will stage a coup and remove the PM. It is a stain on our democracy. Nothing anyone can do about it. They own the country and we just live here and do what we are told.
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It makes sense. It's a valuable resource that the country should own as a whole. Make it work to improve the country, not just a small group of individuals bank balances
We don't have much of it so squeeze every last bit you can out of it.
That's the primary reason yes.
We don't tax corps. We used to. Taxed them 70-95% I can't remember the actual number.
But that's what built the industrial powerhouse that won the cold war. Those high taxes could only be written off by reinvesting into the business. Hiring more people. Raising wages. Buying new equipment. Those high tax rates are what made it all work.
Without those you get Gilded ages like what both proceeded and have followed them. Because capitalism eats itself without a strong government hand at the tiller. Protecting it from itself.
We are only taxing profits FFS. If you want to avoid taxes invest in your people and equipment. higher salaries == less profits == less taxes
If I understand the argument is that we have no expertise in finding and extracting it, so we have to offer bigger concessions to get anybody to do it.
Which sounds like the wrong solution to the problem, but what would I know?
Maybe nobody should extract it.
Yeah but then car no go brrrrrr
Good. Car is noisy and annoying.
Other than CNG/LPG I don't think any NZ cars have run on what we extract for at least a few decades now (could well be wrong).
Fortunately electric cars exist and they can go whrrrrrrrr instead of brrrrr!
Also we could probably build enough bio fuel capacity for all the cars to keep going brr in a carbon neutral way for those that are keen on that sort of thing.
What's the argument for taking such a low cut of the profits?
Could be worse You could be Australian! We subsidise them to take our resources 😀🙁
The moment we discuss resource tax reforms in Australia the mineral lobby will stage a coup and remove the PM. It is a stain on our democracy. Nothing anyone can do about it. They own the country and we just live here and do what we are told.
Could be worse. Could subsidise overseas companies to take the resources. I'm looking at you Australia.