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Resource Super Profits Tax
RIO vs. BHP vs. ASX
Good to see that the big mining stocks have out performed the ASX since the May 2nd announcement of the RSPT. You’d think with the impending doom of this burdensome tax they would be a little less resilient. Surely Fortescue, home of the biggest complaints about the RSPT, has tanked …
Nope… In fact Reuters market analysts have gone from 3 months ago suggesting the the Fortescue Metals stock was merely a HOLD recommendation to the majority of analysts suggesting to BUY the stock since the announcement of the tax.
Surely the people with the most money to lose wouldn’t lie to us about the dire future of Australia’s economy to make more money.
How bout we ask Norway how they are going since the levying of there 50% “super profit” tax (in additional to 28% income tax) on petroleum resources that account for nearly half of their national GDP (versus the ~10% of Australia’s economy accounted for by the resource sector).
Well Norway’s central bank were the first to raise interest rates (an indicator of strong economic growth) after the “GFC” and once again raised rates in May following the Greek debt crises. A move which the Financial Times suggested “highlighted Norway’s safe-haven status as its oil-rich economy rebounds from recession more quickly than the rest of Europe.”
I’m being to think the resource sector is lying to us about the negative effects of the proposed tax. Wonder why?
Fingers crossed that the scare campaign, that has already led to the ousting of a Prime Minister, doesn’t lead us into the hands a religious zealot at the next election.
