David, if you read yesterday's AFR, on page 4 you will find an
article detailing the 8.5 billion$ in tariff assistance provided
to manufacturing, at a cost to both mining and agriculture.
So don't get me going about subsidies.

I know of know fuel subisidies for mining or agriculture.
Fact is, they don't drive their machines on public roads, so the
fuel tax to build roads and maintain them, does not apply.

If miners build ports, railways and all the rest, why should they
not be a tax deduction? If they explore for minerals, why should that
not be a tax deduction? None of these things would take place, if
they were not in the mining business.

If we want to save a few billion, best we shut down the car industry.

Yabby, I agree with your last post. If you read through my posts properly you will see I support the tax incentives for the mining industry. If you are going to engage in discussion, put some effort into listening to what others are saying.

David Corbett:

Your post on Tuesday, 5 June 2012 11:10:45 PM concluded:
“So, to put it bluntly, the mining sector is paying less than its fair share and therefore should pay more.”

Your post on Friday, 8 June 2012 12:19:21 AM reads:
“Yabby, I agree with your last post. If you read through my posts properly you will see I support the tax incentives for the mining industry. If you are going to engage in discussion, put some effort into listening to what others are saying.”

You need to make up your mind whether you think the mining industry is paying its fair share or not.

To answer this, I would suggest your steer clear of the Australia Institute reports – I can vaguely remember the “Mining the Truth” report when it came out and have now re-read the section on subsidies – some of the claims are simply untrue and the general language used is extremely biased. I can offer some examples if you want.

I would probably give GetUp a swerve too. I saw a clip of a guy trying to explain mining royalties the other day and it was clear that he had no idea (and what he said was actually wrong) – sadly, people listen to ignorance and lies.

This has been an exercise in futility. But I'll give it one more shot.

1. Mining companies pay less tax on their net profit because they have additional tax breaks which provide incentive to reinvest, develop, explore etc. This is good because of the economic activity it creates, particularly in many rural areas.

2. Many mining companies don't make massive profits, so I think they should not be taxed any more than they currently are we need to continue encouraging investment.

3. Some companies make huge profits, even as a percentage on their investment. Past a certain point, there needs to be a mechanism to bring the tax contribution of those companies back in line with other industries.

So there, I can be for the tax breaks and for a super profits tax. I'm not sure the MRRT is the ideal way to do this, but the question was how much is their fair share which i tried to answer

3. Some companies make huge profits, even as a percentage on their investment. Past a certain point, there needs to be a mechanism to bring the tax contribution of those companies back in line with other industries.

DC, What a load of rubbish!

Some businesses invest a couple of grand on a computer and make millions.

Face book is a prime example, cost a pittance to set up, in real terms, yet is worth billions.

Do you think they should be paying a super profits tax.

This is where the whole MRRT falls down, as the mechanism is already there to collect taxes from resources, it's called royalties.

It's just that the bulk of the population lives in non mining states and they don't like it.

In fact, take WA out of the equation, and the rest of the country is almost, if not already, in recession.

As for QLD, where I live, we have the second highest mining, to my knowledge, yet we are still going backwards.

This MRRT is simply a money grab.

BTW, these other states are already sharing in the spoils, as many from there enjoy FIFO roles within the industry.

You can give it as many shots as you like David, that does not
seem to change your confusion. You claimed that all these mining
profits were going to overseas investors.

Well clearly all those mining profits are being invested in new
mining projects and not going into investors pockets, as the figures
for our largest miner, BHP, clearly show.

You need to follow the money, rather then make wild and spectacular
claims.