Henry Report

You have got to wonder why we spent untold millions
of dollars to prepare a report that has been kept secret
for 4 months & largely ignored anyway. It was to have
reformed our whole tax system & bring us more in line
with most of the developed World. It hasn't. It has turned
into a just another tax grab. The larger mining companies
will not be happy to pay most of the $9 Billion in extra tax
& get a refund, in kind, of around $750 Million to pay for
infrastructure. Any international mining Company would
now, have to be having a very good look at moving to Hong
Kong, 16.5% or Singapore 18% tax, particularly when they
know that they are paying effectively 13% higher tax than
the big banks. I would love to be a fly on the wall at the next
Fortesque Board Meeting. It is also of note, that one of the
main reasons for the report was to get rid of as many of the
400 odd State taxes, as possible, that in many cases, cost
more to administer than they collect. It has got rid of none.
I wonder how many people in Western Australia, today, will be
discussing leaving the Commonwealth? The mining industry
of Western Australia is already paying the highest proportion
of tax in Australia & this super tax will potentially put them in
a wheel chair, when competing against their biggest
competitors in Brazil.

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I think you'll find the miners will come back Innes, you are being alarmist as usual. BTW I wish I had some gold bars to stick under the bed, the Greeks are going bezerk and so is the US stock market.

I am not trying to be alarmist. BUT, whether they come back

or not, does not alter the facts. You will agree that the

purpose of the tax was to cover the bribery money paid to

all States except W.A. After the ASX reaction, to-day, to New

York overnight, the raising of $5Billion will have cost our

Super Funds twice the budgeted income. That ignores

totally, the loss of around $3Billion in withholding tax this

financial year alone. I am not even concidering the cost

to Centerlink of the reverse effect of the number of Super

Funded retirees who will receive a part pension of 50cents

for every dollar they lose in Super payments. What I am

trying to say is that the tax effect has not been thought

through. Eg. Fortesque Mining which will not be effected for

years, has lost $Billions in value regardless.

BTW The reaction of the gold price is beyond explanation.

At one stage New York was down 1,000 points, I think the

biggest fall in history & gold only rose $1.20 US, then

actually fell 20cents. Crazy stuff !!!

BTW again, the market has only been open for half an hour

& BHP is down another 45c & Rio down a further $1.07.

It was human error Innes, someone Wall Street pushed the wrong button, he pressed the billion button instead of the million button and all hell broke loose . :lol:

Yes the Dow was down 1000 points at one stage but recovered to close down 348.

Some of the reasons for the fall were Procter & Gamble (supplier of pharmaceuticals, cleaning supplies, personal care, and pet supplies) falling 37% but recovered to be down 2%.

The main reason is Greece's problems and potentially Spain, Portugal and other debt-plagued nations, Italy and Ireland.

Europe and Greece, and specifically the fear of their problems being contageous, is what's driving the market lower.

In overseas trading, European markets tumbled, with France's CAC 40 down 2.2%, Germany's DAX down 0.8% and London's FTSE down 1.5%.

Asian markets fell. Japan's benchmark Nikkei index lost 3.3% as investors reacted to the European debt crisis after a long holiday. The Hong Kong Hang Seng lost 1% and the Shanghai Composite lost 1%.

I do not think that those losses were due to the mention of a new mining tax in Australia.

We DO agree sometimes fwed. Even Rudd is not that good.

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