For centuries the federal government has been in the business of
providing billions in subsidies to coal companies in order to
ensure company profits. Modern day subsidies to the coal
industry began in 1932, when the federal government allowed
companies to deduct a portion of their income to help recover
initial capital investments. While many coal companies continue
to reap higher profits than before, thanks to increasing coal
prices, taxpayers still continue to shell out billions of
dollars in federal subsidies to these successful companies. High
Prices, High Profits - Coal prices have steadily increased since
2002. Moreover, prices of coal bought by electric utilities rose
nearly 38.6% from 2004 to 2009. Although coal prices and
production dipped in 2009, they rebounded in 2010, and in 2011
prices increased another 5.7%. - Top producers have reaped
increasing profits. In 2011, CONSOL Energy Inc. earned $632.5
million and Arch Coal Inc. earned $205.2 million. Furthermore,
Peabody Energy Corp., another top c