I fully agree, governments do not make good miners. However they can give incentives for people to invest there money into mining ventures.
I believe that it was in 1987 that the government cancelled their incentives for flow through shares. They used to offer a 133% tax credit for every dollar put into exploration. In other words if you invested $1000.00, you received a tax credit of $1,333.00. If you are in the 54% tax bracket (Provincial and federal combined) on the last few thousand you earn, then you would get back $720.00 from Revenue Canada as a tax refund. Your $1,000 investment cost $280.00. The result was more exploration, which means more jobs created, which means more income tax for the government. The flow through shares still exist, but the tax credit is 100% and not 133%.
Unless something like this is done soon, the VSE, and all juniors on the ASE, and TSE will be history.
Your right Michael, keep the government out of mining, but give the people the incentives to invest to support the companies that are exploring and mining. |
