Wednesday, October 27, 2010

BHP (NYSE:BHP) Should Hold Strong on Mining Tax

Opposition to the draconian mining tax in Australia helped bring down the administration of Kevin Rudd, especially with BHP Billiton (NYSE:BHP) and CEO Marius Kloppers, and the general public, opposing it.

Hopefully will also bring down socialist Julia Gillard, who is attempting to keep the outrageous tax in place, albeit at lower levels than originally proposed.

Mining giants BHP Billiton and Rio Tinto (NYSE:RIO) have been the leaders in opposition to the outrageous tax, which will only encourage the expansion of government programs and spending instead of freedom and free markets.

The Australian states also need to be reined in, who have also set up to confiscate as much of the profits from the miners as they can get their hands on. Together it's producing a devastating impact on the industry.

A deal with the government before Gillard ousted Rudd is being attempted to be cast aside, something BHP and Kloppers especially vehemently oppose.

The best thing that could happen would be to eliminate the tax altogether, and drop the majority of the tax imposed by the states of Australia for no other purpose than to enlarge out-of-control government spending.

Austerity and limited government is the way forward, and governments around the world better get on board with it.

1 comment:

Anonymous said...

being an australian and a holder of BHP shares,the gillard government are playing the low card of socialism.To fund their big bureaucracy full of committees and consultants.They will never state the true facts BHP pay 46% of profit in tax now.employ hundreds of thousands of australians directly and in associated business's.This government will be short lived we can only hope.