For the Fiscal Year 2006 Kentucky provided a net subsidy of nearly $115 million to the coal industry.
And the coal industry kicked back $2 Million to Mitch McConnell.
The Climate Cost Is Unknown.
Coal is responsible for an estimated $528 million in state revenues and $643 million in state expenditures. The $528 million in revenues includes $224 million from the coal severance tax and revenues from the corporate income, individual income, sales, property and transportation taxes and permit fees. The $643 million in expenditures includes $239 million for the coal haul road system, regulation of the environmental and health and safety impacts of coal, support for worker training, research and development for the coal industry (?), promotion of education about coal in the public schools (propaganda) and support of residents employed by coal. Total costs include $85 million to subsidize the mining and burning of coal.
The industry actually costs more than it brings to the state.
The coal industry generated revenues of $303 million while spending to support coal industry totals more than $270 million and off-budget tax expenditures add $85 million for a total of more than $355 million. The net direct impact of the industry on the state budget is an estimated (minus) –$52 million.
Coal employment accounts for only one percent of Kentucky employment. Direct employment in coal totals $83 million while coal workers’ share of state expenditures totals $73 million. The net impact of direct employment is $10 million. But revenues generated in supply industries total $142 million. Spending to support those workers totals $214 million. The net impact of indirect employment on the Kentucky state budget is –$73 million.
These figures do not include the many externalized costs imposed by coal including healthcare, lost productivity resulting from injury and health impacts, water treatment from siltation caused by surface mining, water infrastructure to replace damaged wells, limited development potential due to poor air quality, and social spending associated with declines in coal employment and related economic hardships of coalfield communities. Some of these externalities impose additional costs to the state. Others are borne by communities that mine and burn coal and by those outside the region.
Official sources project a significant decline in production as easy-to-mine coal is depleted with additional challenges as aging coal-fired power plants are retired and new laws on carbon emissions raise the price of coal relative to cleaner alternatives. Industry representatives and supporters embrace Carbon Capture and Sequestration, but these technologies face high costs, significant risk and uncertainty, are already utilizing large public subsidies, and there is no indication that they work.
Tax expenditures for the coal industry are a set of growing but largely hidden subsidies. Kentucky should examine its rate of taxation and use of subsidies and think strategically about the needs of the Commonwealth and the best path to a prosperous future.”
Oh, yeah, Mitch McConnell is bribed $2,020,466 per year.
Rand Paul is only bribed $234,755 per year