Big Coal Loophole Means US Taxpayers Losing Out on Millions
More than 200,000 people have voiced their opposition to a loophole that allows US coal companies to avoid paying millions in royalties every year to federal and state governments.
According to a recent investigation by the Center for American Progress, coal companies are dodging the full cost of royalties for the coal they extract by selling the coal they mine for rock bottom prices to a subsidiary they own. The coal is then sold by the subsidiary at a much higher price, but with no royalty on the second sale.
The US Department of the Interior is currently looking at closing this loophole and making coal companies pay the fair price owing to US taxpayers.
Coal companies with the most to lose, like Wyoming-based Cloud Peak Energy (NYSE: CLD), are lobbying hard against the proposed reforms.
Image credit: Greg Goebel on Flickr