Central Appalachia Severance Taxation and Policies for Future Economic Growth

Central Appalachia is a region in the United States that has been referred to as a paradox by researchers who have studied it. The area is rich with natural resources, yet the region lacks economic development. The mineral extraction industry has been the center of the economy for over a hundred years. The reliance on the industry has caused Central Appalachia to fall behind in several categories. The region has unusually high concentrations of poverty and low high school graduation rates. The revenue from the taxation of coal is the primary source of income for many of the rural counties. This paper will examine the effects of the coal industry on the region and the revenue being generated from the taxation of these minerals. The goal of this research is to determine potential policy changes that could strengthen the economy and end generational poverty