President Biden today formally proposed to raise the federal corporate income tax rate to 28% from the current 21%. This tax increase will drive household and small business utility bills even higher.
Customers directly bear the cost of corporate income taxes imposed on utility companies.
Investor-owned electric, gas, and water companies must get their billing rates approved by the 50 respective state utility commissions. The commissions are required by law to build the cost of taxes into the utility rates and publish details of their utility rate decisions.
“Households are getting pummeled with high inflation and now Biden’s corporate income tax rate hike will drive their costs even higher,” said Grover Norquist, president of Americans for Tax Reform. Every Democrat must now reject Biden’s tax increase or explain to their constituents why they want to impose even higher utility bills.”
When the 2017 Tax Cuts and Jobs Act cut the corporate income tax rate from 35% to 21%, utilities worked with state officials to pass along the tax savings to customers.
To further document the relationship between corporate taxes and utility rates, Americans for Tax Reform previously undertook a 50-state review of utility commission documents and local news sources. We found at least 300 examples of utilities passing tax savings along to customers. You can view these examples as detailed in the 50 state lists below.
With the Biden tax increase, you can expect a movement in the opposite direction.
The TCJA utility savings came in the form of a rate reduction, a bill credit, or a reduction to an existing or planned rate increase.
ATR has also compiled a 90-second nationwide utility savings video from local news reports which may be viewed here.
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.
If Democrats now impose a corporate income tax rate increase, they will have to reckon with constituents and local news coverage noting utility bills are going up.
The 50 state lists are below:
ALABAMA
Alabama Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/alabama-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
ALASKA
Alaska Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/alaska-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
ARIZONA
Sinema Warned: A Vote for a Corporate Tax Rate Hike is a Vote for Higher Utility Bills https://www.atr.org/sinema-warned-vote-corporate-tax-rate-hike-vote-higher-utility-bills
ARKANSAS
Arkansas Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/arkansas-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
CALIFORNIA
California Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/california-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
COLORADO
Colorado Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/colorado-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
CONNECTICUT
Connecticut Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/connecticut-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
DELAWARE
Delaware Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/delaware-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
FLORIDA
Florida Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/florida-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
GEORGIA
Georgia Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/georgia-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
HAWAII
Hawaii Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/hawaii-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
IDAHO
Idaho Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/idaho-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
ILLINOIS
Illinois Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/illinois-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
INDIANA
Indiana Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/indiana-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
IOWA
Iowans Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/iowans-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
KANSAS
Kansas Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/kansas-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
KENTUCKY
Kentucky Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/kentucky-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
LOUISIANA
Louisiana Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/louisiana-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
MAINE
Maine Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/maine-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
MARYLAND
Maryland Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/maryland-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
MASSACHUSETTS
Massachusetts Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/massachusetts-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
MICHIGAN
Michigan Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/michigan-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
MINNESOTA
Minnesotans Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/minnesotans-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
MISSISSIPPI
Mississippi Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/mississippi-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
MISSOURI
Missouri Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/missouri-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
MONTANA
Montanans Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/montanans-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
NEBRASKA
Nebraska Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/nebraska-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
NEVADA
Nevada Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/nevada-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
NEW HAMPSHIRE
New Hampshire Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/new-hampshire-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
NEW JERSEY
New Jersey Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/new-jersey-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
NEW MEXICO
New Mexico Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/new-mexico-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
NEW YORK
New York Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/new-york-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
NORTH CAROLINA
North Carolina Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/north-carolina-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
NORTH DAKOTA
North Dakotans Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/north-dakotans-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
OHIO
Ohioans Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/ohioans-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
OKLAHOMA
Oklahoma Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/oklahoma-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
OREGON
Oregon Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/oregon-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
PENNSYLVANIA
Pennsylvanians Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/pennsylvanians-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
RHODE ISLAND
Rhode Island Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/rhode-island-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
SOUTH CAROLINA
South Carolina Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/south-carolina-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
SOUTH DAKOTA
South Dakota Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/south-dakota-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
TENNESSEE
Tennessee Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/tennessee-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
TEXAS
Texas Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/texas-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
UTAH
Utah Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/utah-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
VERMONT
Vermont Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/vermont-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
VIRGINIA
Virginians Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate HikeĀ https://www.atr.org/virginians-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
WASHINGTON, D.C.
Washington, D.C. Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/washington-dc-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike
WASHINGTON STATE
Washington State Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/washington-state-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate
WEST VIRGINIA
Manchin’s Corporate Tax Hike Will Stick West Virginians with Higher Utility Bills https://www.atr.org/west-virginians-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
WISCONSIN
Wisconsin Residents Will Get Stuck with Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/wisconsin-residents-will-get-stuck-higher-utility-bills-due-biden-corporate-tax-rate-hike
WYOMING
Wyoming Residents Will Get Stuck with Even Higher Utility Bills Due to Biden Corporate Tax Rate Hike https://www.atr.org/wyoming-residents-will-get-stuck-even-higher-utility-bills-due-biden-corporate-tax-rate-hike