The Climate Sceptics Party (CSP) is opposed to the RSPT proposed by Treasury Secretary Ken Henry and the Rudd Federal Labor Government.
The CSP is opposed to any new taxes, increases in government control and more red tape. Since the Labor Government could not get the money from ETS to pay off massive debts, they are raiding profitable industries. By taxing the most profitable producers at the highest rate, the RSPT will effectively tax the most efficient producers, and subsidize the less profitable producers. This flies in the face of economic theory underpinning our history as the most efficient primary producers in the world.
The RSPT will produce tax revenue when commodity prices are favourable, but also refund tax deductions of a project in the event of closures. The CSP does not believe any government is capable of restraining spending of a windfall during the good times; and will result in severe deficits when the inevitable downturn occurs.
Under Australian law, mineral deposits are the property of the state governments, and royalties are paid by companies to develop these deposits. By a complex arrangement under the RSPT, state government royalty payments will be paid, and then rebated to the companies by the Australian government.
By incorporating the state royalty system under the federal tax system, the RSPT is very close to an appropriation of state assets. The royalty system, though not perfect, is flexible and adequate to meet states revenue needs (e.g. the hospital system).
The RSPT is complex, novel and untested, and a product of ivory tower theories promulgated with little stakeholder consultation or thought to its practical implementation.
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