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2010-06-07

The RSPT and Brown tax - what are the rationales as a rent tax?

Comments on Ben Smith “Government should pay up front for its share of mining companies' costs”, 7/06/2010, http://www.theaustralian.com.au/news/opinion/government-should-pay-up-front-for-its-share-of-mining-companies-costs/story-e6frg6zo-1225876178390
While the rational and its niceties of a Brown tax may be very clear to some economists, it is unlikely to be so for most people.

Now let's leave the government's proposed RSPT aside and focus completely on the Brown tax argument.

If that is good as it can get as claimed, then why 40%, not any other percent, say 80%, or 10%?

The partner approach of the Brown tax makes the rent argument superfluously unnecessary.

So, in the end, is it a rent tax, or tax, or purely return to a compulsory business partner?

PS: Ben Smith is among the 20 leading economists who made an open statement in support the government's RSPT. It is unclear what relationship of this post to that statement to me now.

PPS: I should point out that Ben was one of my supervisors to my PhD study at the ANU in early 1990s, so I know him well and respect him very much.

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