U.S. taxes subsidize Asian coal demand

[DrLeftover]

From a certified Non-Disgusting, Non-Hater news outlet.



The issue is complicated, but interesting.

(Reuters) - Asian economies, hungry for coal, stand to gain from a U.S. program meant to keep domestic power cheap and abundant.



At issue is how much miners pay the government to tap the coal-rich Powder River Basin in eastern Montana and Wyoming. Much of the basin is on federal land.



Selling that coal cheap at a time of increasing exports across the Pacific could amount to a U.S. taxpayer subsidy for industrial rivals like China.

http://www.reuters.com/article/2012/10/18/us-coal-exports-idUSBRE89H0CI20121018

 

[Evil Eye]

Well if it's really a problem they could just raise export tariffs, right?



Seems to me exporting is a way of getting money into your economy though...

 

[DrLeftover]

You talking about the Chinese Economy or in Montana?



Yes, it is creating jobs in Montana, but at what cost to the rest of us?

 

[Evil Eye]

In Montana.

but at what cost to the rest of us?

Just because the Chinese can get it for less doesn't mean Americans can't get it for less as well, does it? If it does, then, yes, there's something wrong with that. Nothing a little raise in tariffs can't fix, surely?