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Special Taxation of the Mining Industry *
Author(s) -
Freebairn John,
Quiggin John
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.1759-3441.2010.00085.x
Subject(s) - transparency (behavior) , tax reform , economics , double taxation , international taxation , indirect tax , equity (law) , capital (architecture) , value added tax , monetary economics , public economics , natural resource economics , business , archaeology , political science , law , history
The efficiency and equity arguments for changing the structure of, and the aggregate level of, special taxation of the mining industry are reviewed. An economic rent base tax would cause smaller taxation distortions than the current quantity base royalties. A higher level of taxation of immobile factors, including mining resources, as part of a tax‐mix change to fund lower taxation of internationally mobile capital would lead to higher Australian economic growth and after‐tax returns to labour. The Brown tax, the Allowance for Corporate Capital, and versions of a resource rent tax, including the petroleum resource rent tax and minerals resource rent tax variants, are described and evaluated as measures of economic rent in the mining industry. In principle, the Brown tax has greater transparency and desired efficiency properties.