Trump made extravagant and wildly unrealistic promises that he would bring back the coal industry, which is as reasonable as trying to make the horse and buggy industry boom again. But the new tax cut bill has the coal companies very angry, saying it will destroy them.
Coal CEO Robert Murray warns that if the Senate version of tax reform is enacted by President Trump he’ll be destroying thousands of coal mining jobs in the process.
“We won’t have enough cash flow to exist. It wipes us out,” Murray told CNNMoney in an interview on Tuesday…
The tax bill the Senate passed last week would help companies by lowering the corporate tax rate, but it also eliminates some tax breaks.
For coal companies, it could be a double-whammy. It would preserve the Alternative Minimum Tax (AMT) and impose new limits on the interest payments that businesses can write off. Murray Energy estimates that these changes would raise its tax bill by $60 million per year.
Yeah, my heart bleeds for you. His company brings in nearly $4 billion a year, so $60 million in taxes is barely a blip on the radar, if it registers at all. I guess you’ll have to raise your price for coal, which will only help encourage the use of cleaner fuels for energy production. Sounds like a win-win to me.