John Kartch

Montanans Will Face Higher Taxes Than China and Europe if Dem Bill Passes

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Posted by John Kartch on Monday, September 27th, 2021, 1:12 PM PERMALINK

If Sen. Jon Tester votes for the Democrats' reconciliation bill, he will stick Montana companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would saddle Montana with a combined federal-state corporate tax rate of 31.5% vs. communist China's 25%.

The Democrat bill will also put Montana companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Tester must explain why he wants to stick Montanans with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The Democrats' $3.5 trillion bill will impose the largest tax increase since 1968. It will raise individual income taxes, small business taxes, corporate taxes, and capital gains taxes. If passed, the combined federal-state capital gains tax rate for Montanans would be 38.41% vs. China's 20%.

The burden of the corporate tax rate hike will be borne by workers in the form of lower wages, and by households in the form of higher prices. Higher corporate tax rates will also raise utility bills.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax. He wrote in 2017:

"Over the last few decades, economists have used empirical studies to estimate the degree to which the corporate tax falls on labor and capital, in part by noting an inverse correlation between corporate taxes and wages and employment. These studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome."

A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003:

"We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that $1 of additional tax reduces wages by 92 cents in the long run. The incidence of a $1 fall in value added is smaller, consistent with our wage bargaining model."

A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase:

"We find, controlling for other macroeconomic variables, that wages are significantly responsive to corporate taxation. Higher corporate tax rates depress wages. Using spatial modelling techniques, we also find that tax characteristics of neighbouring countries, whether geographic or economic, have a significant effect on domestic wages."

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

"Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax."

A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue:

"The empirical results presented here suggest that the incidence of corporate taxation is more than fully borne by labor. I estimate that a one percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. The magnitude of the results predicts that the decrease in wages is more than four times the amount of the corporate tax revenue collected."

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

"Because capital is mobile, high tax rates divert investment away from the U.S. corporate sector and toward housing, noncorporate business sectors, and foreign countries. American workers need that capital to become more productive. When it’s invested elsewhere, real wages decline, and if product prices are set globally, there is no place for the corporate tax to land but straight on the back of the least-mobile factor in this setting: the American worker."

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"In calculating distributional effects, the Urban-Brookings Tax Policy Center (TPC) assumes investment returns (dividends, interest, capital gains, etc.) bear 80 percent of the burden, with wages and other labor income carrying the remaining 20 percent."

"Tester would be wise to oppose any tax increase," said Norquist.


New Hampshire Companies Will Face Higher Taxes Than China and Europe if Dem Bill Passes

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Posted by John Kartch on Monday, September 27th, 2021, 1:06 PM PERMALINK

If Sen. Maggie Hassan votes for the Democrats' reconciliation bill, she will stick New Hampshire companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would saddle New Hampshire with a combined federal-state corporate tax rate of 32.2% vs. communist China's 25%.

The Democrat bill will also put New Hampshire companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Hassan must explain why she wants to stick New Hampshire companies with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The Democrats' $3.5 trillion bill will impose the largest tax increase since 1968. It will raise individual income taxes, small business taxes, corporate taxes, and capital gains taxes.

If passed, the combined federal-state capital gains tax rate for New Hampshire residents would be 36.8% vs. China's 20%.

The burden of the corporate tax rate hike will be borne by workers in the form of lower wages, and by households in the form of higher prices. Higher corporate tax rates will also raise utility bills.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax. He wrote in 2017:

"Over the last few decades, economists have used empirical studies to estimate the degree to which the corporate tax falls on labor and capital, in part by noting an inverse correlation between corporate taxes and wages and employment. These studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome."

A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003:

"We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that $1 of additional tax reduces wages by 92 cents in the long run. The incidence of a $1 fall in value added is smaller, consistent with our wage bargaining model."

A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase:

"We find, controlling for other macroeconomic variables, that wages are significantly responsive to corporate taxation. Higher corporate tax rates depress wages. Using spatial modelling techniques, we also find that tax characteristics of neighbouring countries, whether geographic or economic, have a significant effect on domestic wages."

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

"Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax."

A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue:

"The empirical results presented here suggest that the incidence of corporate taxation is more than fully borne by labor. I estimate that a one percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. The magnitude of the results predicts that the decrease in wages is more than four times the amount of the corporate tax revenue collected."

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

"Because capital is mobile, high tax rates divert investment away from the U.S. corporate sector and toward housing, noncorporate business sectors, and foreign countries. American workers need that capital to become more productive. When it’s invested elsewhere, real wages decline, and if product prices are set globally, there is no place for the corporate tax to land but straight on the back of the least-mobile factor in this setting: the American worker."

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"In calculating distributional effects, the Urban-Brookings Tax Policy Center (TPC) assumes investment returns (dividends, interest, capital gains, etc.) bear 80 percent of the burden, with wages and other labor income carrying the remaining 20 percent."

"Hassan would be wise to oppose any tax increase," said Norquist.


Georgians Will Face Higher Taxes Than China and Europe if Dem Bill Passes

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Posted by John Kartch on Monday, September 27th, 2021, 11:46 AM PERMALINK

If Sens. Raphael Warnock and Jon Ossoff vote for the Democrats' reconciliation bill, they will stick Georgia companies with a higher tax rate than communist China.

The Democrats' reconciliation bill would saddle Georgia with a combined federal-state corporate tax rate of 30.7% vs. communist China's 25%.

The Democrat bill will also put Georgia companies at a competitive disadvantage vs. Europe: The European average corporate tax rate is 19%.

"As the country tries to recover from a once-in-a-century pandemic, Warnock and Ossoff must explain why they want to stick Georgians with higher taxes than China and Europe," said Grover Norquist, president of Americans for Tax Reform.

The Democrats' $3.5 trillion bill will impose the largest tax increase since 1968. It will raise individual income taxes, small business taxes, corporate taxes, and capital gains taxes.

If passed, the combined federal-state capital gains tax rate for Georgians would be 37.55% vs. China's 20%.

The burden of the corporate tax rate hike will be borne by workers in the form of lower wages, and by households in the form of higher prices. Higher corporate tax rates will also raise utility bills.

The non-partisan Joint Committee on Taxation recently affirmed in congressional testimony that the corporate tax rate hike will fall on "labor, laborers."

Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax. He wrote in 2017:

"Over the last few decades, economists have used empirical studies to estimate the degree to which the corporate tax falls on labor and capital, in part by noting an inverse correlation between corporate taxes and wages and employment. These studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome."

A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003:

"We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that $1 of additional tax reduces wages by 92 cents in the long run. The incidence of a $1 fall in value added is smaller, consistent with our wage bargaining model."

A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase:

"We find, controlling for other macroeconomic variables, that wages are significantly responsive to corporate taxation. Higher corporate tax rates depress wages. Using spatial modelling techniques, we also find that tax characteristics of neighbouring countries, whether geographic or economic, have a significant effect on domestic wages."

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

"Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax."

A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue:

"The empirical results presented here suggest that the incidence of corporate taxation is more than fully borne by labor. I estimate that a one percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. The magnitude of the results predicts that the decrease in wages is more than four times the amount of the corporate tax revenue collected."

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

"Because capital is mobile, high tax rates divert investment away from the U.S. corporate sector and toward housing, noncorporate business sectors, and foreign countries. American workers need that capital to become more productive. When it’s invested elsewhere, real wages decline, and if product prices are set globally, there is no place for the corporate tax to land but straight on the back of the least-mobile factor in this setting: the American worker."

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"In calculating distributional effects, the Urban-Brookings Tax Policy Center (TPC) assumes investment returns (dividends, interest, capital gains, etc.) bear 80 percent of the burden, with wages and other labor income carrying the remaining 20 percent."

"Warnock and Ossoff would be wise to oppose any tax increase," said Norquist.

 

More from Americans for Tax Reform


50 Cent Opposes Biden Tax Hike Plan

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Posted by John Kartch on Thursday, September 23rd, 2021, 7:02 PM PERMALINK

As a guest tonight on MSNBC's The Beat with Ari Melber, 50 Cent stated his opposition to President Biden's tax increase plan and said Americans will move to low-tax areas of the country so they can "hold on to just what they are earning. Not to have it just taken from them by the government."

Regarding Biden's tax increase plan, 50 Cent said:

"His tax plan, I didn't realize I would be paying 62% of my income back to the IRS. So that does change a lot. New York City will change dramatically. Like they are going to end up moving to different territories. You look at Silicon Valley, it is now in Austin, Texas.

So you'll start to see people moving from these places to new places that make sense for them to hold on to just what they are earning. Not to have it just taken from them by the government."

50 Cent then hinted that he will move to Texas where the tax burden is lower:

"I'll move, Ari. I'm going to Texas. I've got my cowboy hat and everything. Everything is bigger in Texas, really beautiful people. Nice people in Texas."

WATCH:

 

Photo Credit: TigerDirect.com


Under Dem Bill, Key States to Face Higher Taxes than China

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Posted by John Kartch on Tuesday, September 21st, 2021, 2:23 PM PERMALINK

The corporate tax rate increase and the capital gains tax rate increases in the Democrat reconciliation bill will leave states represented by swing-vote Democrats with significantly higher taxes than China.

China's corporate tax rate is 25% and its capital gains tax is 20%.

In Sen. Kyrsten Sinema's Arizona, the combined federal-state corporate tax rate would be 30.1% vs. China's 25%. The combined federal-state capital gains tax would be 35.17% vs. China's 20%

In Sen. Maggie Hassan's New Hampshire, the combined federal-state corporate tax rate would be 32.2% vs. China's 25%. The combined federal-state capital gains tax would be 36.8% vs. China's 20%.

In Sen. Jon Tester's Montana, the combined federal-state corporate tax rate would be 31.5% vs. China's 25%. The combined federal-state capital gains tax would be 38.41% vs. China's 20%.

In Sen. Joe Manchin's West Virginia, the combined federal-state corporate tax rate would be 31.3% vs. China's 25%. The combined federal-state capital gains tax would be 38.3% vs. China's 20%.

"All 50 Democrat senators need to explain to their constituents why they have decided to saddle them with higher taxes than communist China or Europe," said Grover Norquist, president of Americans for Tax Reform. "The last thing we need right now is a tax increase."

Congressional Democrats are on the verge of raising the federal corporate tax rate from 21% to 26.5%. This would result in a combined federal and state rate average of 31%, higher than China and higher than America’s major economic competitors. The developed world average (OECD) is 23.5%.

If the Democrats' reconciliation bill becomes law, the combined federal-state corporate tax rate and combined federal-state capital gains tax rates for all 50 states would be as follows:

(Source: Tax Foundation maps here and here)

ALABAMA

Corporate: 30%
Capital gains 35.21%

ARIZONA

Corporate: 30.1%
Capital gains: 35.17%

ARKANSAS

Corporate: 31.1%
Capital gains: 34.75%

CALIFORNIA

Corporate: 33%
Capital gains: 45.10%

COLORADO

Corporate: 29.8%
Capital gains: 36.35%

CONNECTICUT

Corporate: 32%
Capital gains: 38.79%

DELAWARE

Corporate: 32.9%
Capital gains: 38.40%

FLORIDA

Corporate: 29.8%
Capital gains: 31.80%

GEORGIA

Corporate: 30.7%
Capital gains: 37.55%

HAWAII

Corporate: 31.2%
Capital gains: 39.05%

IDAHO

Corporate: 31.6%
Capital gains: 38.30% 

ILLINOIS

Corporate: 33.5%
Capital gains: 36.75%

INDIANA

Corporate: 30.1%
Capital gains: 35.03%

IOWA

Corporate: 33.7%
Capital gains: 37.62%

KANSAS

Corporate: 31.6%
Capital gains: 37.50%

KENTUCKY

Corporate: 30.2%
Capital gains: 36.80%

LOUISIANA

Corporate: 30.8%
Capital gains: 35.89%

MAINE

Corporate: 33.1%
Capital gains: 38.95%

MARYLAND

Corporate: 32.6%
Capital gains: 37.55%

MASSACHUSETTS

Corporate: 32.4%
Capital gains: 36.80%

MICHIGAN

Corporate: 30.9%
Capital gains: 36.05%

MINNESOTA

Corporate: 33.7%
Capital gains: 41.65%

MISSISSIPPI

Corporate: 30.2%
Capital gains: 36.80% 

MISSOURI

Corporate: 28.7%
Capital gains: 37.20%

MONTANA

Corporate: 31.5%
Capital gains: 38.41%

NEBRASKA

Corporate: 32%
Capital gains: 38.64%

NEVADA

Corporate: 26.5%
Capital gains: 31.80%

NEW HAMPSHIRE

Corporate: 32.2%
Capital gains: 36.80%

NEW JERSEY

Corporate: 35%
Capital gains: 42.55%

NEW MEXICO

Corporate: 30.8%
Capital gains: 35.34%

NEW YORK

Corporate: 31.8%
Capital gains: 42.70%

NORTH CAROLINA

Corporate: 28.3%
Capital gains: 37.05%

NORTH DAKOTA

Corporate: 29.7%
Capital gains: 33.54%

OHIO

Corporate: 26.5%
Capital gains: 35.79%

OKLAHOMA

Corporate: 30.9%
Capital gains: 36.55%

OREGON

Corporate: 32.1%
Capital gains: 41.70%

PENNSYLVANIA

Corporate: 33.8%
Capital gains: 34.87%

RHODE ISLAND

Corporate: 31.6%
Capital gains: 37.79%

SOUTH CAROLINA

Corporate: 30.2%
Capital gains: 35.72%

SOUTH DAKOTA

Corporate: 26.5%
Capital gains: 31.80%

TENNESSEE

Corporate: 31.3%
Capital gains: 31.80%

TEXAS

Corporate: 26.5%
Capital gains: 31.80%

UTAH

Corporate: 30.1%
Capital gains: 36.75%

VERMONT

Corporate: 32.7%
Capital gains: 40.55%

VIRGINIA

Corporate: 30.9%
Capital gains: 37.55%

WASHINGTON STATE

Corporate: 26.5%
Capital gains: 38.80% 

WEST VIRGINIA

Corporate: 31.3%
Capital gains: 38.30%

WISCONSIN

Corporate: 32.3%
Capital gains: 37.16%

WYOMING

Corporate: 26.5%
Capital gains: 31.80%

WASHINGTON, D.C.

Corporate: 32.6%
Capital gains: 42.55%

Please visit Tax Foundation site for handy maps:

House Democrats Corporate Income Tax Rates by State | Tax Foundation

House Democrats Capital Gains Tax Rates in Each State | Tax Foundation


Dems Set Biden Up to Break Tax Pledge

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Posted by John Kartch on Thursday, September 16th, 2021, 2:02 PM PERMALINK

Congressional Democrats are pushing a series of tax increases that hit households making less than $400K, setting up President Biden to break his tax pledge.

Biden and Vice President Harris made the $400K tax pledge a key part of the 2020 presidential campaign, clearly stating the commitment at least 60 times.

Below is the video and written documentation of this promise:

Click here for the short version of the video with 13 examples of the pledge.

Click here for the full version of the video with every instance of the pledge.

Click here for a 45-second sizzle reel of the pledge.

The full written documentation of the pledge can be found below:

Joe Biden on CNBC, May 22, 2020: "Nobody making under 400,000 bucks would have their taxes raised. Period. Bingo."

Joe Biden on ABC News, August 23, 2020:

Joe Biden in Kenosha, Wisconsin on September 3, 2020: "I pay for every single thing I’m proposing without raising your taxes one penny. If you make less than 400 grand, you’re not going to get a penny taxed."

Joe Biden during a WFLA Interview on September 15, 2020: “Nobody making less than $400,000 have to pay a penny more in tax under my proposals.”

Joe Biden during a Telemundo Interview on September 15, 2020: "I'm not going to raise taxes on anybody making less than 400,000.”

Joe Biden on Twitter, September 17, 2020: “If you make under $400,000, you will not pay a penny more in taxes when I'm president."

Joe Biden on Twitter, September 17, 2020: "No surprise, Donald Trump is lying about my tax plan. Here’s the truth about how I’ll make corporations pay their fair share while ensuring Americans making under $400,000 don’t pay a penny more."

Joe Biden in Hermantown, Minnesota on September 18, 2020 "And I’ll do it without raising anyone’s taxes if you make less than $400,000 a year."

Joe Biden in Manitowoc, Wisconsin on September 21, 2020: “Under my plan nobody making less than 400,000 bucks -- and I don’t make it and you don’t make it, I don’t think -- in this country will see their taxes go up.”

Joe Biden in Greensburg, Pennsylvania on September 30, 2020: “And we’re going to do it without asking anyone who makes under $400,000 a year to pay one more penny in taxes. Guaranteed. My word on it.”

Joe Biden in Jonestown, Pennsylvania on September 30, 2020: “We’re going to do it all without raising a penny in taxes for anybody who makes less than $400,000 a year.”

Joe Biden in Grand Rapids, Michigan on October 2, 2020: “Anyone making less than $400,000 a year won’t pay a penny more."

Joe Biden in Miami, Florida on October 5, 2020: “I’m not going to raise taxes on anyone who makes less than $400,000 a year. You won’t pay a penny more. I guarantee you.”

Kamala Harris during Vice Presidential Debate on October 7, 2020: “Joe Biden has been very clear. He will not raise taxes on anybody who makes less than $400,000 a year.”

Joe Biden on Twitter, October 7, 2020: “Let me be clear: A Biden-Harris Administration won't increase taxes by a dime on anyone making less than $400,000 a year.”

Joe Biden in Las Vegas, Nevada on October 9, 2020: “It’s not going to raise a penny in tax for anyone making less than $400,000 a year. Not a penny.”

Kamala Harris on Twitter, October 9, 2020: “Joe Biden has been very clear: he will not raise taxes on anybody who makes less than $400,000 a year.”

Joe Biden in Erie, Pennsylvania on October 10, 2020: “I’m not going to raise taxes on anybody making less than 400 grand.”

Joe Biden in Toledo, Ohio on October 12, 2020: “I’m not going to raise taxes on anyone who makes less than $400,000 a year."

Joe Biden in Pembroke Pines, Florida on October 13, 2020: “I’m not going to raise taxes on a single solitary American making less than $400,000 a year. You won’t pay a penny more. It’s a guarantee.”

Joe Biden on Twitter, October 15, 2020: “Let me be very clear: If you make under $400,000 you won’t pay a penny more in taxes under my administration.”

Joe Biden ABC Town Hall on October 15, 2020: 

Joe Biden in Michigan on October 16, 2020: “No one who makes less than $400,000 a year will pay a penny more.”

Kamala Harris in Orlando, Florida on October 19, 2020: “Joe Biden will not increase taxes on anyone who makes less than $400,000 a year, period.”

Kamala Harris in Jacksonville, Florida on October 19, 2020: “Taxes will not be raised on anyone making less than $400,000 a year.”

Kamala Harris in Milwaukee, Wisconsin on October 20, 2020: “We will not increase taxes for anybody making under $400,000 a year.”

Kamala Harris in Asheville, North Carolina on October 21, 2020: “Joe Biden is saying, I’m not going to raise taxes on anybody who makes less than $400,000 a year.”

Kamala Harris in Atlanta, Georgia on October 23, 2020: “Which is why Joe Biden and I are saying, “One, taxes will not be raised on anyone making less than $400,000 a year.”

Joe Biden in Bucks County, Pennsylvania on October 24, 2020: “None of you will have your taxes raised. Anyone making less than $400,000 will not see a penny in taxes raised."

Joe Biden on CBS 60 Minutes, October 25, 2020:

Biden: “Nobody making less than $400,000 will pay a penny more in tax under my proposal.”

Norah O'Donnell, CBS: "That's a promise?"

Biden: "That's a guarantee. A promise. I give you my word as a Biden. That's an absolute guarantee."

Joe Biden in Atlanta, Georgia on October 27, 2020: “I guarantee you -- no matter what you hear this president lying about -- no one making less than $400,000 a year will have one penny in taxes raised. Not one penny. It’s a guarantee.”

Kamala Harris in Reno, Nevada on October 27, 2020: "Joe Biden says we’re not going to increase taxes on anyone making less than $400,000 a year."

Kamala Harris in Las Vegas, Nevada on October 27, 2020: “Joe Biden says, that we’re not going to raise taxes on anyone making less than $400,000 a year."

Joe Biden in Atlanta, Georgia on October 27, 2020: “No one making less than $400,000 a year will have one penny in taxes raised. Not one penny. It's a guarantee.”

Kamala Harris in Phoenix, Arizona on October 28, 2020: “We are not going to raise taxes on anyone making under $400,000 a year."

Kamala Harris in Tucson, Arizona on October 28, 2020: “Joe Biden who says, 'You want to deal with the economy, then one, we will not raise taxes on anyone making less than $400,000 a year.'"

Joe Biden in Broward County, Florida on October 29, 2020: “We can do it without raising taxes on a single person making less than 400,000 bucks a year.”

Joe Biden in Tampa Bay, Florida on October 29, 2020: “I guarantee you -- my word as a Biden -- no one making less than $400,000 will pay a single penny more in taxes. Not a penny.”

Kamala Harris in Fort Worth, Texas on October 30, 2020: “Joe Biden is committed to not raising taxes ever on anyone making less than $400,000 a year.”

Joe Biden in Des Moines, Iowa on October 30, 2020: “We can do it without raising a penny tax on the middle class. I guarantee you -- give you my word as a Biden -- no one making less than $400,000 a year will see a penny in their taxes raised, no one.”

Kamala Harris in McAllen, Texas on October 30, 2020: “Let’s deal with the economy and not raise taxes for anyone who makes less than $400,000.”

Joe Biden in St. Paul, Minnesota on October 30, 2020:  “I promise you, you have my word, if you make less than $400,000 a year, you won’t pay a penny more in taxes.”

Joe Biden in Milwaukee, Wisconsin on October 30, 2020: “I give you my word as a Biden, if you make less than $400,000 -- if I’m elected president -- you’re not going to see a penny of your taxes go up, not a penny.”

Kamala Harris in Houston, Texas on October 30, 2020: “Joe Biden says we will not raise taxes on anyone that makes less than $400,000 a year.”

Kamala Harris in Fort Worth, Texas on October 30, 2020: “Which is why Joe Biden is committed to not raising taxes ever on anyone making less than $400,000 a year.”

Joe Biden in Detroit, Michigan on October 31, 2020: “Under my plan if you make less than $400,000 I guarantee you're not going to pay a penny more in taxes.”

Joe Biden in Flint, Michigan on October 31, 2020: “Under my plan, if you make less than $400,000 a year, you’re not going to pay a penny in additional taxes.”

Joe Biden on Twitter, November 1, 2020: "Under my tax plan, no one making under $400,000 will see their taxes go up."

Joe Biden in Cleveland, Ohio on November 2, 2020: “Under my plan, if you make less than $400,000, you won’t pay a single penny more in taxes. You have my word on it.”

Joe Biden in Beaver County, Pennsylvania on November 2, 2020: “We’re not going to raise taxes on anybody making less than 400,000 bucks a year.”

Joe Biden in Pittsburgh, Pennsylvania on November 2, 2020: "Under my plan I commit to you no one making less than 400 grand is going to see a penny in taxes raised."

Kamala Harris in Pittsburgh, Pennsylvania on November 2, 2020: “Let me be clear, Joe and I will not increase taxes on anyone making under $400,000 a year, period.”

Joe Biden in Pittsburgh, Pennsylvania on November 2, 2020: “Under my plan, as Kamala said, if you make less than 400,000 bucks, you’re not going to pay a penny more in taxes.”

Kamala Harris in Detroit, Michigan on November 3, 2020: “That’s why Joe says we’re not passing any taxes on anybody making less than $400,000 a year."

Kamala Harris on Twitter,  November 11, 2020: “As president, @JoeBiden will make corporations and the wealthiest finally pay their fair share—and he won’t ask a single person making under $400,000 per year to pay a penny more in taxes."

Kamala Harris on Twitter, November 21, 2020: “Let’s be clear: if you make under $400,000 a year, you won’t pay a penny more in taxes under a Biden-Harris administration.”

Joe Biden during an ABC News interview on March 16, 2021: "If you make more than -- less than $400,000, you won't see a fed -- one single penny in additional federal tax."

Joe Biden during remarks in Washington, D.C. on April 2, 2021: "And it won’t raise a penny tax on a family making less than $400,000 a year — no federal tax, no addition."

Joe Biden during remarks in Washington, D.C. on April 7, 2021: "I will not impose any tax increases on people making less than $400,000 a year."

Joe Biden during a speech in Washington, D.C. on April 28, 2021: "I will not impose any tax increases on people making less than $400,000 a year.  

Joe Biden during a speech in Portsmouth, Virginia on May 3, 2021: "The reason I’m bothering to do this is I keep hearing out in the press, 'Biden is going to raise your taxes.'  Anybody making less than $400,000 a year will not pay a single penny in taxes."

Photo Credit: By Gage Skidmore licensed under CC BY-SA 2.0


Dem Bill Gives Tax Cuts to Reporters at "Local Newspapers" With Up to 750 Employees

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Posted by John Kartch, Mike Mirsky on Wednesday, September 15th, 2021, 3:49 PM PERMALINK


Congressional Democrats have proposed a tax credit for "local news journalists" at newspapers with up to 750 employees. Yes, a special tax cut for reporters.

The Democrats' multi-trillion-dollar tax and spend plan contains an employment tax credit of up to $12,500 per person for reporters at “eligible” newspapers. As a section-by-section analysis from the Ways and Means Committee details

“The credit amount is equal to 50% of wages for each of the first 4 calendar quarters, and 30% of wages for each calendar quarter thereafter. Eligible local newspaper publisher is any employer that is in the trade or business of publishing a local newspaper that serves the needs of a regional or local community and who employs no more than 750 employees.”  

This special reporter tax carve-out would amount to $1.3 billion. Beneficiaries would likely include many established daily newspapers and left-leaning alternative weeklies, and such papers as The Malibu Times, Aspen Times and the Vineyard Gazette serving the progressive playground of Martha’s Vineyard.

The bill also provides a $1,500 tax credit for the purchase of an "e-bike" costing up to $8,000. So if you are a "local" journalist in the market for an e-bike, your ship has come in.

Photo Credit: "Journalist with pipe" by C.A.D.Schjelderup licensed under CC BY-SA 4.0

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VIDEO: JCT Confirms Dem Corporate Tax Hike Hits Workers

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Posted by John Kartch, Isabelle Morales on Tuesday, September 14th, 2021, 3:48 PM PERMALINK


Today the Joint Committee on Taxation confirmed that corporate tax rate hikes diminish the wages of workers. Testifying before the House Ways & Means Committee, JCT Chief of Staff Thomas A. Barthold said:

"Literature suggests that 25% of the burden of the corporate tax may be borne by labor in terms of diminished wage growth."

Congressman Mike Kelly (R-Pa.) then asked, "Who is going to bear the brunt of this [Democrat corporate income tax hike]?

Barthold replied:

"Labor. Laborers."

WATCH:

Economists across the political spectrum agree that workers bear the brunt of corporate tax increases. And 25% is on the very low end.

According to the Stephen Entin of the Tax Foundation, labor (or workers) bear an estimated 70 percent of the corporate income tax:

"Over the last few decades, economists have used empirical studies to estimate the degree to which the corporate tax falls on labor and capital, in part by noting an inverse correlation between corporate taxes and wages and employment. These studies appear to show that labor bears between 50 percent and 100 percent of the burden of the corporate income tax, with 70 percent or higher the most likely outcome."

A 2012 paper at the University of Warwick and University of Oxford found that a $1 increase in the corporate tax reduces wages by 92 cents in the long term. This study was conducted by Wiji Arulampalam, Michael P. Devereux, and Giorgia Maffini and studied over 55,000 businesses located in nine European countries over the period 1996-2003:

"We identify this direct shifting through cross-company variation in tax liabilities, conditional on value added per employee. Our central estimate is that $1 of additional tax reduces wages by 92 cents in the long run. The incidence of a $1 fall in value added is smaller, consistent with our wage bargaining model."

A 2015 study by Kevin Hassett and Aparna Mathur found that a 1 percent increase in corporate tax rates leads to a 0.5 percent decrease in wage rates. The study analyses 66 countries over 25 years and concludes that workers could see a greater reduction in wages than the federal government raises in new revenue from a corporate income tax increase:

"We find, controlling for other macroeconomic variables, that wages are significantly responsive to corporate taxation. Higher corporate tax rates depress wages. Using spatial modelling techniques, we also find that tax characteristics of neighbouring countries, whether geographic or economic, have a significant effect on domestic wages."

A 2006 study by William Randolph of the Congressional Budget Office found that 74% of the corporate tax is borne by domestic labor:

"Burdens are measured in a numerical example by substituting factor shares and output shares that are reasonable for the U.S. economy. Given those values, domestic labor bears slightly more than 70 percent of the burden of the corporate income tax."

A 2007 study by Alison Felix estimated that a 1 percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. She concluded that the wage reductions are over four times the amount of collected corporate tax revenue:

"The empirical results presented here suggest that the incidence of corporate taxation is more than fully borne by labor. I estimate that a one percentage point increase in the marginal corporate tax rate decreases annual wages by 0.7 percent. The magnitude of the results predicts that the decrease in wages is more than four times the amount of the corporate tax revenue collected."

A 2012 Harvard Business Review piece by Mihir A. Desai notes that raising the corporate tax lands “straight on the back” of the American worker and will see a decline in real wages:

"Because capital is mobile, high tax rates divert investment away from the U.S. corporate sector and toward housing, noncorporate business sectors, and foreign countries. American workers need that capital to become more productive. When it’s invested elsewhere, real wages decline, and if product prices are set globally, there is no place for the corporate tax to land but straight on the back of the least-mobile factor in this setting: the American worker."

Even the left-of-center Tax Policy Center estimates that 20 percent of the burden of the corporate income tax is borne by labor:

"In calculating distributional effects, the Urban-Brookings Tax Policy Center (TPC) assumes investment returns (dividends, interest, capital gains, etc.) bear 80 percent of the burden, with wages and other labor income carrying the remaining 20 percent."

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Sinema Warned: A Vote for a Corporate Tax Rate Hike is a Vote for Higher Utility Bills

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Posted by John Kartch, Michael Mirsky on Sunday, September 12th, 2021, 6:56 PM PERMALINK

If Sinema and Kelly enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If Sens. Kyrsten Sinema and Mark Kelly hike the corporate income tax rate, Arizona households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least ten Arizona utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the Arizona Corporation Commission, EPCOR, Arizona Public Service, Bermuda Water Company, Liberty Utilities, Quail Creek, Tucson Electric Power Company, Alliant Gas, Southwest Gas Corporation, Arizona Water Company and UNS Electric, Inc. passed along tax savings to their customers. 

Arizona Public Service (Arizona): The utility passed along savings to customers. As noted in this January 9, 2018 APS document:

APS has requested the Arizona Corporation Commission approve a $119 million bill reduction for customers, based on federal corporate tax cuts, effective February 1, 2018.

If approved, the $119 million decrease will offset the $95 million revenue increase that resulted from APS’s last rate review. The savings of $0.004258/kWh will be passed directly to customers through the Tax Expense Adjustor Mechanism (TEAM), a new adjustor mechanism that was included in the company’s rate review, and customer savings will vary with actual energy usage. APS customers would receive the credit on their monthly bill.

EPCOR (Arizona): The utility passed along savings to customers. As noted in this June 12, 2018 EPCOR press release:

More than 57,000 EPCOR wastewater customers will receive more than $1.1 million in federal corporate tax cut savings, reducing the amount of their monthly wastewater bill starting with the July 2018 billing cycle. 

Today, the Arizona Corporation Commission (ACC) approved EPCOR’s request to refund $1,106,392 in tax reform savings to all of the company’s residential and commercial wastewater customers.

“We are extremely pleased to help our wastewater customers save more than $1 million each year, and it’s important to us that we put this into effect as soon as possible,” commented Joe Gysel, President of EPCOR USA, Arizona’s largest regulated water utility. “All our customers deserve to share in the savings generated by federal tax reform. It's positive for them, for their communities and for our state.”

Bermuda Water Company (Arizona): As noted in this August 24, 2018 Prescott eNews excerpt:

The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers.

Liberty Utilities (Arizona): As noted in this August 24, 2018 Prescott eNews excerpt:

The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

The Commission has been working on rate adjustments every month since February. At the July Open Meeting, the Commission addressed federal tax adjustments for both Southwest Gas and Liberty Utilities with adjustments made to their revenue requirements of $20 million and $1.9 million respectively.

Quail Creek (Arizona): As noted in this August 24, 2018 Prescott eNews excerpt:

The Arizona Corporation Commission is following through on its promise to pass savings created by the Tax Cuts and Jobs Act to Arizona utility ratepayers. As of August, the effort has totaled $189,088,437.

At the August Open Meeting, the Commission addressed tax adjustments for both the Quail Creek and Bermuda Water Companies. The largest tax adjustment occurred earlier this year when the Commission approved a $119 million dollar reduction to benefit APS customers.

Tucson Electric Power Company (Arizona):  As noted in this April 13, 2018 Arizona Daily Star excerpt:

EP and its sister utilities “believe it is in the public interest to share a substantial portion of the expected income tax savings with their respective customers on an expedited basis,” the companies said.

TEP says its proposals may include a fast-tracked regulatory approval process to implement a billing credit as soon as possible; a higher seasonal credit that would help offset customer bills during higher usage months; or bill credits that would decline over time while still smoothing the bill impacts of future rate requests.

Alliant Gas (Arizona): As noted on the Alliant Gas website:

The Arizona Corporation Commission ordered Alliant Gas to file a rate case for its Page and Payson Divisions as part of the company’s action to refund customers the income tax reductions resulting from The Tax Cuts and Jobs Act of 2017.

Southwest Gas Corporation (Arizona): As noted on the Southwest Gas website:

The Tax Cuts and Jobs Act of 2017 reduced the federal income tax rate for corporations like Southwest Gas, and we’re passing the savings on to you. 

Arizona Water Company (Arizona): As noted in this March 15, 2018 Casa Grande Dispatch excerpt:

Arizona Water Company presented a plan to the Arizona Corporation Commission Tuesday to reduce customer rates in its western group, which includes Casa Grande, Coolidge and Stanfield.

Commissioners want to assure federal tax reform law directly benefits utility customers by passing federal tax savings on to the ratepayers, according to a press release. Commissioners have voted to award federal tax reform money directly to utility customers.

Going forward, commissioners voted to ensure a 3.6-percent rate reduction in monthly rates for the western group and a 4-percent reduction in monthly rates for the northern group.

UNS Electric, Inc. (Arizona): As noted in this UNS Electric, Inc. document:

The purpose of the Tax Adjustment is to address changes in the Company’s federal income tax rate until such changes are reflected in the Company’s next general rate case. The savings will be returned through a combination of (i) a per kilowatt-hour (“kWh”) bill credit for all customer classes and (ii) a regulatory liability that reflects the deferral of the return of a portion of the savings (which will be returned to customers in the Company’s next rate case). 

For 2019 (and subsequent years), the tax savings to be returned to customers will be calculated as for 2018 and will reflect the effective federal income tax rate applicable for that tax year.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.


New Mexico Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike

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Posted by John Kartch, Michael Mirsky on Friday, September 10th, 2021, 1:23 PM PERMALINK

If Heinrich and Ray Luján enact a corporate income tax rate increase, they will have to explain why they just increased your utility bills

If President Biden and Sens. Martin Heinrich and Ben Ray Luján hike the corporate income tax rate, New Mexico households and businesses will get stuck with higher utility bills as the country tries to recover from the pandemic.

Democrats plan to impose a corporate income tax rate increase to 26.5%, even higher than communist China's 25% and higher than the developed world average of 23.5%. This does not even include state corporate income taxes, which average 4 - 5% nationwide.

Customers bear the cost of corporate income taxes imposed on utility companies. Corporate income tax cuts drive utility rates down, corporate income tax hikes drive utility rates up. 

Electric, gas, and water companies must get their billing rates approved by the respective state utility commissions. When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utility companies worked with state officials to pass along the tax savings to customers, including at least five New Mexico utilities.

The savings typically come in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase. 

According to a report published in the trade publication Utility Dive, customers nationwide were to receive a $90 billion utility benefit from the Tax Cuts and Jobs Act:

Estimates derived from 2017 annual SEC 10-K filings indicate that the 14-percentage-point reduction in the corporate tax rate enacted under the 2017 Tax Cuts and Jobs Act (TCJA) resulted in investor-owned utilities establishing significant regulatory liability balances, totaling approximately $90 billion to be refunded back to customers.

Americans for Tax Reform has compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.

If Democrats now impose a corporate income tax rate increase, they will have to reckon with local news coverage noting utility bills are going up. A vote for a corporate income tax hike is a vote for higher utility bills as households try to recover from the pandemic.

Tax Cuts and Jobs Act Impact: Working with the New Mexico Public Regulation Commission, Public Service Company of New Mexico, El Paso Electric, Southwest Public Service Company, New Mexico Gas Company and Zia Natural Gas Company passed along tax savings to their customers.

Public Service Company of New Mexico: As noted in this February 27, 2018 Albuquerque Journal article excerpt:

The company will gain about $48 million from the lowering of the corporate income tax rate from 35 percent to 21 percent. It will pass those gains onto consumers starting this year as part of Public Service Co. of New Mexico’s latest rate case that concluded in December, allowing PNM to lower its newest rate hike to just 1.4 percent.

El Paso Electric: As noted in this April 25, 2018 El Paso Electric news release:

The New Mexico Public Regulation Commission (NMPRC) today approved El Paso Electric’s (EPE) filing to begin issuing a credit in bills to reflect the reduction of the federal tax rate for New Mexico customers. The federal tax credit will be reflected on customer bills beginning May 1, 2018. 

EPE estimates the credit for the average residential New Mexico customer will range from $1.67 per month in the winter to $2.68 per month in the summer. The credit will appear as a line item adjustment on monthly bills.

EPE estimates that customers will see an annual reduction of approximately $4.9 million in base rates or a credit for all customers at 3.87 percent.

Southwest Public Service Company: As noted in this February 15, 2019 S&P Global excerpt:

Southwestern Public Service Co. reached a settlement agreement with the New Mexico Public Regulation Commission, under which the utility would see an annual revenue increase of $12.5 million.

The settlement will revise the commission's September 2018 order, which granted the company a revenue increase of approximately $8 million, based on a return on equity of 9.1% and a 51% equity ratio.

The original order also directed the Xcel Energy Inc. subsidiary to refund customers $10.2 million related to adjustments associated with the federal Tax Cuts and Jobs Act, retroactive to Jan. 1, 2018. Southwestern Public Service, or SPS, appealed the order to the New Mexico Supreme Court.

SPS in October 2017 originally requested a $43 million increase in base rates, an ROE of 10.25% and an equity ratio of 53.97%. The utility later filed a request to reduce revenue requirements by $11 million to reflect the federal tax overhaul.

New Mexico Gas Company: As noted in this New Mexico Gas Company 2018 rate case overview:

The Company is requesting an $8 million increase in annual base revenues, which correlates to approximately a 1.4% increase in an average residential customer bill.

---

This rate request applies the benefits of recently enacted federal tax reform to our customers and is $9.6million lower as a result of passing through the tax reform benefits. The request would have been $17.6 million before application of the tax reform benefits

Zia Natural Gas Company: As noted in this March 20, 2018 New Mexico Public Regulation Commission document

On January 26, 2018, ZIA tiled NMPRC Case No. 18-00018-UT, an Application for Revision of its Rates, Rules, and forms under Advice Notice No. 57 ("Application"); supporting schedules, direct testimonies and exhibits; and the Certificate of Service. In summary, ZIA is requesting a general rate increase of $2,597,203. As part of its Application, the Company incorporated the change in federal tax rate as a result of the passage of TCJA. The tax rate change impacted both the income tax expense and ADIT line items used to calculate the proposed customer rates.

Conversely, if Biden and Democrats raise the corporate tax rate, they will add to the burden faced by working families. And any small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs.

President Biden should withdraw his tax increases.

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