BHP’s $22 billion profit – please don’t tax them Mr Swan
Remember all the lies about a Resource Super Profits Tax and the compromise anaemic brother, the Minerals Resource Rent Tax?
The end of mining. The destruction of the economy. Massive unemployment. No investment.
BHP announced a $22.5 billion profit today. It is the biggest profit in Australian corporate history and an 85.9 percent increase over last year.
Its effective tax rate was 23.4 percent (including royalties which total almost 3 percent of that figure). So let’s call it an effective income tax rate of 20 percent.
The corporate company tax rate in Australia is 30 percent.
If these profits had been made after 1 July next year the Minerals Resource Rent Tax (which only applies to coal and iron ore) would get a little of that super profit. The original Resource Super Profit Tax would have applied to all resources and have raised much much more from BHP/s huge [profit.
That’s more money for schools, hospitals, public transport and renewable energy. Oh but hang on, the Labor Government won’t use any extra tax money for these tings. They’ll shovel most of any extra tax back to business with company tax cuts.
Maybe it is time to squeeze the mining companies until their pips squeak.