Tuesday, May 25, 2010

Fortescue's letter to shareholders

...they have dropped on the Australian people a socialist style funding and tax device where the Government is now your silent partner...

Letter to Fortescue Shareholders

Fortunately one of the questions in the letter can be cleared up straight away:

"To make the point, imagine for a moment that your home loan was based on
you failing to make your mortgage repayments and the house being sold in a
mortgagee-in-possession auction. Do you think your banker would be happy
that someone would make good 40 per cent of the loss as a reason to lend you
the money - in return for taking 40 per cent of your income? The same income
they were relying on to allow you to repay the loan? Clearly the banker would
have stopped you buying the house because they rely on believable repayment
schedules, not bankruptcy events."

The answer is 'yes'.

Related Posts

. Five easy pieces - the Mining Super Profits Tax

. Okay so no-one likes to part with profit, but the mining fight is becoming a spectator sport

. It's not a tax, it applies to more than super profits, so how did so many people get it so wrong?

. Henry to miners: no compromise on where the tax kicks in

. We'll still be mining