Independents urged to block mining tax

The rural independents who backed a minority Labor government have been urged to block Labor's proposed mining tax.

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The Australian Chamber of Commerce and Industry (ACCI) wants MPs Tony Windsor and Rob Oakeshott to vote against the minerals resource rent tax unless more changes are made to the 30 per cent impost.

"They should not pass the mining tax legislation unless there is a stronger program of tax reform that is attached to it," chief executive Peter Anderson told reporters on Wednesday.

"That program of tax reform needs to go beyond just redistributing mining tax changes into small changes to company tax rates."

The Gillard government has offered to hold a summit in 2011 to discuss the Henry tax review as part of the deal to win over the rural independents.

Mr Anderson said the summit should also examine the GST, payroll tax and capital gains tax to see how mining tax changes could be integrated into a broader program of tax reform.

A minority government propped up by a Greens MP and three independents would make it more difficult to meet economic
challenges.

"This will be a more crowded government and a more crowded parliament but that crowded government and that crowded parliament must not crowd out the entrepreneurship of the private sector nor stifle the capacity of the private sector to grow," Mr Anderson said.

The Greens, who stand to gain the balance of power in the Senate from July, needed to be more economically pragmatic, he added.

"What is concerning is that the Greens' economic platform certainly does focus on redistribution of wealth rather than the creation of wealth."

But Mr Anderson blamed the failure of the major parties to sell strong visions for the future on the rise in the Greens vote.

"That actually has led in part to us now having a minority government situation," he said, adding there was a lesson there for the major parties.


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Source: AAP


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