- Press Releases
- Repealing Percentage Depletion Increases Capital Costs for the Mining Industry, Puts Jobs at Risk
March 7, 2014
Washington, D.C. – The National Mining Association (NMA) is reviewing the potential impact on the mining industry of House Ways and Means Committee Chairman David Camp’s (R-Mich.) tax reform discussion draft. Tax reform should increase competitiveness of domestic industries, create jobs and spur economic growth. The tax reform proposal does not meet those principles for the U.S. mining industry.
Certain aspects of the proposal, including the elimination of the percentage depletion deduction, would gravely impair the global competitiveness of U.S. mining. Mining is a capital intensive enterprise and elimination of percentage depletion would increase significantly the cost of capital for mining, putting at risk the high wage jobs of hundreds of thousands of miners and other workers in the supply chain.
NMA intends to work with the congressional tax writing committees to ensure that any tax reform proposal keeps our domestic mining industry globally competitive so it can supply the energy, metals and minerals essential to our nation’s economic security and growth.