KPMG Econtech produced a report on the tax saying that
Overall, total GDP is 0.7 per cent higher than would otherwise be the case, made up of contributions of 0.3 per cent from the company tax cut and 0.4 per cent from the changes to resource taxation. The cut in the company tax rate stimulates investment across the whole economy, leading to higher production reflected in the gain of 0.3 per cent in non-mining GDP.I guess what has irked some company executives, with their own share portfolios, is that
a resource rent tax, collects only a portion of above normal profits, maintaining the incentive to invest, while effecting a transfer from industry shareholders to taxpayers.It is unfortunate that calculated long terms gains are being stymied by perceptions of short term pain and conflicts of interest
In the mining industry, removing and reducing inefficient taxes leads to gains in activity. Specifically, effectively abolishing crude oil excise and resource royalties enhances incentives, leading to a gain in mining production of 5.7 per cent, which is boosted to 6.6 per cent when the company tax cut is also taken into account.
