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Coal CEO: Senate tax plan 'wipes us out'

MTAtech

MTAtech

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[h=1]Coal CEO: Senate tax plan 'wipes us out'[/h]
[h=2]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.[/h]
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The Senate bill caps interest deductions at 30% of of a company's income. Bob Murray says that this would hurt coal.

So, not only does the Trump backed Senate bill suck for home interest paying Americans, it sucks for coal. Trump and the GOP are equal opportunity double-crossers.
 
MTAtech said:
[h=1]Coal CEO: Senate tax plan 'wipes us out'[/h]

The Senate bill caps interest deductions at 30% of of a company's income. Bob Murray says that this would hurt coal.

So, not only does the Trump backed Senate bill suck for home interest paying Americans, it sucks for coal. Trump and the GOP are equal opportunity double-crossers.
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Why does this hurt coal specifically? It does hurt companies that have highly leveraged balance sheets.
 
washunut said:
Why does this hurt coal specifically? It does hurt companies that have highly leveraged balance sheets.
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According to the article, coal is high borrowed capital intensive and therefore pay a lot of expenses in interest. The auto dealers have the same problem, but they lobbied the Senate and got an exemption.
 
MTAtech said:
According to the article, coal is high borrowed capital intensive and therefore pay a lot of expenses in interest. The auto dealers have the same problem, but they lobbied the Senate and got an exemption.
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Yes those are real concerns. They probably have a lot of debt because companies like his are privately owned. Thus the balance sheet shows less capital. It could be a problem that will lead these types of companies to have to sell to a public entity.

This could happen in other industries which are capital intensive.

Seems like the law of unintended consequences. Happens in many broad laws touching a huge economy.
 
washunut said:
Yes those are real concerns. They probably have a lot of debt because companies like his are privately owned. Thus the balance sheet shows less capital. It could be a problem that will lead these types of companies to have to sell to a public entity.

This could happen in other industries which are capital intensive.

Seems like the law of unintended consequences. Happens in many broad laws touching a huge economy.
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It's one of many unintended consequences of rushing a bill without thinking it out. Politico has piece about glitches and mistakes in the Senate bill.
 
MTAtech said:
It's one of many unintended consequences of rushing a bill without thinking it out. Politico has piece about glitches and mistakes in the Senate bill.
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Unintended consequences? You mean when Republican Senators pass **** such as this?

DP_2PLaXkAA8WfL.jpg


I'm shocked, I tell you, shocked!
 
Phys251 said:
Unintended consequences? You mean when Republican Senators pass **** such as this?

DP_2PLaXkAA8WfL.jpg


I'm shocked, I tell you, shocked!
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I'm not! Non-tech needs this tax cut to justify the current (and any future) market rally. Anyone with a clue knows stocks will tank without reforming a tax policy, tailored primarily following WW2 and the Korean War, so this will pass in some form by the end of the year. The only question is how much they can jam in there before it's all said and done.

Donald Trump has effectively tied his Presidency to the stock market so i don't expect him to sign any binding legislation that isn't to the betterment of such ends.
 
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