Coal company CEO Robert Murray is worried that the Senate's tax plan comes to fruition, it will be the end of the coal industry as we know it, saying it "wipes out everything that President Trump has done for coal," and could see coal companies go bankrupt.
Murray, a fierce supporter of Trump's efforts to revive coal, condemned the Senate bill as a "mockery" that would inflict a devastating tax hike on beleaguered coal mining firms as well as other capital-intensive companies.
The Senate's version of the bill does away with tax breaks that coal companies have come to depend on:
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.
Like other coal companies, Murray Energy borrows heavily to pay for its expensive mining operations. The Senate bill would cap the amount of interest payments that can be written off to 30% of a company's income.