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Subject:
From:
[log in to unmask] (Pat Gunning)
Date:
Tue Mar 25 11:42:22 2008
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Doug Mackenzie wrote:
>
> Such things are not fixed in stone, and vary according
> to context. I suspect that a land/resource tax might
> generate "enough" revenue in Saudi Arabia.


If a tax on oil was anticipated, it would reduce the incentive to search 
for oil. The larger the tax, the lower the incentive. Oil may be a "gift 
of nature" but that "gift" must be discovered. Take away the reward for 
discovery and you take away the discovery itself.

Surely George did not have in mind taxing desert land. If he did, the 
implication would be that he advocated reducing the economic growth 
associated with the discovery and use of natural resources.

Pat Gunning

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