Great Idea Of The Day That's To Smart To Happen | Increase Kentucky's Coal Severance Tax

Increase coal severance tax

"..A non-profit economic development organization, the Berea-based Mountain Association for Community Economic Development, set out to calculate coal's effect on the state budget, using methodology originated almost 30 years ago by the Legislative Research Commission.

Conclusion: Coal is a parasite on the state budget.

In 2006, state government spent $115 more on services and programs for the coal industry and those to whom it provides jobs than it collected in taxes from them.

The authors present detailed explanations for how they reached their conclusions, which you can find at www.maced.org/coal.

There's a lot to think about here, some of which will be subject to hot debate.

One conclusion is inescapable, though: The legislature should raise the coal-severance tax.

Kentucky's coal-severance tax rate, which is lower than West Virginia's, has been unchanged for 30 years. In 2006, the year that was studied, Kentucky collected less in severance taxes from the industry ($224 million) than it cost to repair roads damaged by heavy trucks transporting coal from mines ($239 million).

We suspect that one of the more controversial findings will involve indirect employment by the coal industry. This refers to jobs that wouldn't exist if people directly employed by the industry weren't spending money in other businesses.

The authors estimate the cost of providing services to those indirectly employed by coal exceeds the taxes they pay by $73 million, a reflection of their low wages.."

-----------------------------

On a related note. Mountain top removal is being debated in Congress. Which usually means that in the spirit of compromise with Republicans very little to nothing will be done to stop this abomination against nature.

Congress hears debate over mountain top removal mining

-