I think the idea of the proposed ‘super tax’ on non-renewable recourses is a great idea, however, I also feel the government is going the wrong way about it.

I know they (the miners) don't own the minerals, we do. But, all we want is a bigger slice, don't we?

So I say, ‘tax the eggs, not the chickens’.

What this means is instead of taxing the miners, tax the minerals instead by adding an ‘excise’, similar to that on fuel, tobacco etc.

The markets will still buy the minerals, despite any excise and they will simply pass the costs on to the consumers, nothing wrong with 'user pays', who can then pay less by reducing their personal carbon footprint if they so choose.

The miners still make strong profits and we get a bigger slice.

By adopting this method, one would assume our mining companies, the back bone of our economy, can continue to pour the billions they do into exploration, as it is the exploration that is most at risk as like anything, if you make the end result less attractive, then those who are taking the huge risks are less likely to do so.

Why can't this work.

You know this is just like the farmer , he works of the land, makes profit if any of the land, but say he starts to make super profits does he get slugged with another tax just because he works harder and prices have gone higher.

How about the supermarkets, will they be slugged due to super profits they make.
We can include the banks.

Where does a super profit start and end, this is up to the government.

Will costs be passed on and the effect on the markets.

The states already have a tax on these companies so in effect it the federal government trying to take more money away from states with this action.
The states will try to hold on but politically will give up.

Looks to me like Rudd got his ETS after all. Not much debate on OLO about the same tax applying to coal, coal seam gas and natural gas. Looks like the “working families” in this lucky country of ours, just took one on the chin with their energy bills.

Rudd has masterfully focused our attention on hitting the “big miners” whilst getting us to pay for his debts.

Will we ever learn?

Australians don't know what energy bills are. The whole idea of the "egg not the chicken" has some sense to it. I do agree though that the tax needs to be across the board on all resources and not just on the mega companies. Minerals are not a renewable resource such as farm produce, the farmer renews his product every year and will be sustainable in the long term as are retailers, mining is a once only proposition. We don't get to mine it a second time for future generations when the big Australia becomes the big retirement village.