Mining Tax Reduces Mining Activity-What A Shock

Xstra, a mining company is announcing that in the wake of the "windfall profit" tax on miners in Australia planned by Kevin Rudd's Labor government, they will cancel their investments, something which will mean the loss of more than 3,000 jobs.

Kevin Rudd is predictably in denial about this connection, but it is obvious for anyone who lacks a stake in the planned tax that if you reduce potential profits, then a lot fewer investments will be worth making, leading to fewer investments and fewer jobs-and relatively high paying jobs at that.

Assuming the Chinese boom continues, Australia's economy will also continue to boom,even if Kevin Rudd continues his destructive reign. But it won't boom as much as it would if Australian voters are wise enough to remove Rudd's Labor government from office in the next election.