A study commissioned by the WA Chamber of Commerce and Industry has found WA's economy would shrink by $60 billion over the next decade if the resource super profits tax is introduced.
The CCI commissioned ACIL Tasman to examine what effects the proposed tax will have on all businesses across the State.
ACIL's interim report, which examined the economy-wide impact of the tax, confirmed that the RSPT would be bad for business, bad for the economy, and bad for workers.
CCI chief executive, James Pearson said "The findings paint a disturbing picture of how the WA economy will weaken under an RSPT."
He said the economy would be $60 billion dollars smaller over the next 10 years.
"This is equivalent to the mining, construction and utilities sectors shutting down for a year," said Mr Pearson.
"It also finds that there will be up to 100,000 fewer jobs, which equates to around nine per cent of the total workforce."
The report found even next year, before the tax is introduced, it will slash economic growth from a projected 4.25 per cent to as little as 1.7 per cent, costing $4.4 billion and 17,000 jobs.
"It will cost the WA economy as much as a further $5.6 billion in 2012 and $6.7 billion in 2013, with 40,000 fewer jobs over these two years," Mr Pearson said.
"It makes no sense to introduce new taxes that will hold back WA. CCI calls on the Federal Government to scrap the plan and allow the state to grow to its full potential."