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Economic Analysis of the Government’s Recent Mining Tax Proposals *
Author(s) -
Parmenter Brian,
Breckenridge Amar,
Gray Stephen
Publication year - 2010
Publication title -
economic papers: a journal of applied economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.245
H-Index - 19
eISSN - 1759-3441
pISSN - 0812-0439
DOI - 10.1111/j.1759-3441.2010.00080.x
Subject(s) - prime minister , government (linguistics) , key (lock) , prime (order theory) , public economics , economics , resource (disambiguation) , economic analysis , law and economics , political science , macroeconomics , computer science , politics , law , classical economics , computer security , computer network , philosophy , linguistics , mathematics , combinatorics
We explain the mechanics of resource rent taxes, including the RSPT that was proposed by Kevin Rudd in May 2010. We discuss the key design flaw of the proposed RSPT as applied to new projects and the issues of retrospectivity associated with the RSPT proposal. We outline some deficiencies in the economic modelling on which the government relied in support of the RSPT and propose revised modelling to overcome the deficiencies. Finally, we review the revised mining‐tax proposals announced by Prime Minister Gillard in July 2010.