Comparing Company Profits and Government Revenues from Extractives During the ‘Commodity Super Cycle’

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Company profits of mining and oil & gas companies soared during the so-called commodity super cycle and governments around the world have reacted by increasing tax rates on these projects. Critics have warned that especially African resource dependent countries will see a sharp drop in extractive industry investments due to a rise in tax rates. This research project aims to assess whether it is reasonable for governments to demand a larger share of the pie by comparing company profits to government revenues during the boom years.