OOPS: Every House Democrat Endorsed By U.S. Chamber Voted for Job-Killing Biden Bucks

Posted by Tom Hebert on Friday, May 7th, 2021, 4:30 PM PERMALINK Follow @tomhebertdc

The U.S. economy added an anemic 266,000 jobs in April and the unemployment rate rose to 6.1 percent, a far cry from Dow Jones estimates which predicted 1 million new jobs and an unemployment rate of 5.8 percent.

The U.S. Chamber of Congress, the world’s largest pro-business trade association, issued a press release blaming the anemic jobs numbers on President Biden’s supplemental $300-per-week unemployment payments, saying:

“One step policymakers should take now is ending the $300 weekly supplemental unemployment benefit. Based on the Chamber’s analysis, the $300 benefit results in approximately one in four recipients taking home more in unemployment than they earned working.”

Of course, the Chamber is correct – paying people not to work is a massive disincentive for Americans to return to work. At the current federal unemployment supplement level of $300, 37 percent of workers make more on unemployment than at work.

The unfortunate part for the U.S. Chamber is that every single House Democrat the trade association endorsed in the 2020 election cycle voted to extend the 300-per-week “Biden Bucks.”

The $1.9 trillion “American Rescue Plan Act of 2021” passed the House on a narrow 219-212 vote in February. Of the 23 House Democrats endorsed by the U.S. Chamber during the 2020 election cycle, 15 won re-election. All 15 of these Democrats voted to pass the American Rescue Plan which extended the Biden Bucks program through Labor Day.

The U.S. Chamber’s endorsement of 23 House Democrats was a notable increase compared to prior years. During the 2018 cycle, the Chamber reportedly endorsed only 7 House Democrats. According to the U.S. Chamber’s own assessment of its impact on the 2020 House elections, the “U.S. Chamber endorsements are known to have a big impact and that rang true in 2020.”

Below are the House Democrats endorsed by the U.S. Chamber of Commerce who voted in favor of the American Rescue Plan and the percentage of the vote they received as candidates during the 2020 election.

Rep. Colin Allred (TX-32), won re-election with 51.9% of the vote.
Rep. Lizzie Fletcher (TX-7), won re-election with 50.8% of the vote.
Rep. Haley Stevens (MI-11), won re-election with 50.2% of the vote.
Rep. Josh Harder (CA-10), won re-election with 55.2% of the vote.
Rep. Cindy Axne (IA-3), won re-election with 49.7% of the vote.
Rep. Susie Lee (NV-3), won re-election with 48.8% of the vote.
Rep. Angie Craig (MN-2), won re-election with 48.2% of the vote.
Rep. Andy Kim (NJ-03), won re-election with 53.2% of the vote.
Rep. Abigail Spanberger (VA-7), won re-election with 50.9% of the vote.
Rep. Sharice David (KS-03), won re-election with 53.6% of the vote.
Rep. Antonio Delgado (NY-19), won re-election with 54.2% of the vote.
Rep. Elaine Luria (VA-2), won re-election with 51.5% of the vote.
Rep. Dean Phillips (MN-3), won re-election with 55.6% of the vote.
Rep. Greg Stanton (AZ-9), won re-election with 61.6% of the vote.
Rep. David Trone (MD-6), won re-election with 58.9% of the vote.

Photo Credit: Ron Cogswell

Fact or Fiction? Debunking Claims About Vaping

Posted by Karl Abramson on Tuesday, June 15th, 2021, 3:15 PM PERMALINK Follow @karlabramson

Misconceptions about vaping are incredibly common, particularly among the people who vaping would benefit most. For adult smokers, switching from cigarettes to vape products can save their life. In fact, if a majority of American smokers made the switch to vaping, 6.6 million lives would be saved. In the interests of public health, it is critical that myths about vaping are debunked so people can better understand these products. This fact check confronts several of the most widely-spread misconceptions about vaping.

Myth: Vaping is just as harmful as cigarette smoking.

Fact: Vaping is estimated to be at least 95% less harmful than cigarette smoking. More than 50 public health organizations and medical bodies have publicly endorsed vaping as safer than smoking.

Myth: Nicotine causes cancer.

Fact: No, nicotine does not cause cancer. Nicotine, while addictive, is not classified as a carcinogen and is relatively benign, like caffeine. Cigarette harm comes, not from nicotine, but from tar and thousands of chemicals produced by the combustion process - the "smoke". E-cigarettes do not have a combustion process and produce vapor, not smoke, so these harmful chemicals are absent.

Myth: Vaping causes “popcorn lung”.

Fact: No, vaping does not cause bronchiolitis, known as “popcorn lung”. Multiple scientific studies have found no indication that e-liquids cause it and there has never been a recorded case of a vaper developing this condition.

Myth: E-cigarettes and vaping caused the 2019 outbreak of EVALI (severe lung injury).

Fact: Nicotine vaping did not cause severe lung disease. The outbreak of EVALI that occurred a few years ago was tied directly to a chemical present in black-market THC vapes, Vitamin E Acetate, that has never been found in nicotine-containing vapes or e-cigarettes.

Myth: There is a youth vaping “epidemic”.

Fact: Claims of a youth vaping epidemic lack supporting evidence. Surveys showing high usage among teens have artificially high response rates because they routinely classify someone as a vaper if that person has tried even one puff in a 30-day period. Academic analysis found that National Tobacco Youth Survey data did not support claims of a new epidemic of nicotine addiction.

Myth: Vaping, like combustible cigarettes, disproportionately harms vulnerable populations.

Fact: Vaping has tremendously positive effects on disadvantaged populations and helps to reverse the damage that big tobacco companies caused by targeting the impoverished, racial minorities, LGBTQ persons, and those suffering from mental illness and substance abuse. Vaping is critical to helping these vulnerable people quit the deadly habit of smoking and has been found to be more effective than any other nicotine replacement therapy.

Myth: The reason teenagers vape is the available flavors.

Fact: Flavors have no effect on youth use. A mere 5% of young vapers reported it was the flavors that attracted them to e-cigarettes and academic studies have found that teenage non-smokers willingness to try plain versus flavored e-cigarettes does not differ. However, flavors are essential for smoking cessation which is why adult access must be preserved.

Photo Credit: Massachusetts General Hospital

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Oklahoma Governor Kevin Stitt Signs Bill to Cut Taxes, Improve Public Health

Posted by John Kartch on Tuesday, June 15th, 2021, 12:18 PM PERMALINK Follow @JohnKartch

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

If President Biden and congressional Democrats hike the corporate income tax rate, California households and businesses will get stuck with even higher utility bills.

Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. 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 officials to pass along the tax savings to customers, including at least 12 California utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.

Working with the California Public Service Commission, California Water Service, Pacific Gas and Electric Company, Golden State Water Company, Suburban Water Systems, San Jose Water Company, California American Water Company, California-Oregon Telephone Company, Southern California Gas Company, Southern California Edison, San Diego Gas & Electric, Calaveras Telephone Company and Sierra Telephone Company passed along tax savings to their customers.

Southern California Gas Company: As noted in this January 2020 Energy Division document:

SoCalGas tax savings from the TCJA to be refunded to ratepayers is $75 million.

California Water Service: As noted in this May 30, 2018 California Water Service press release:

California Water Service (Cal Water) submitted a filing with the California Public Utilities Commission (CPUC) yesterday to decrease revenue needed in its service areas by almost $18 million, due to changes in federal tax laws and CPUC-authorized capital equity and debt financing costs. If approved as submitted, new rates reflecting the lower tax rates and financing costs will be effective July 1, 2018.

Pacific Gas and Electric Company: As noted in this March 30, 2018, PG&E press release:

PG&E is taking action to pass along approximately $450 million in annual tax savings to its customers. As a first step, today PG&E made three separate filings requesting to pass along approximately $325 million per year in federal tax savings from the federal Tax Cuts and Jobs Act for 2018 and 2019. PG&E has proposed to the CPUC that the benefits of the federal tax savings be used to offset expected rate increases.

Golden State Water Company: As noted in this June 13, 2018 CBS Sacramento news excerpt:

Golden State Water Company, which services Rancho Cordova, Gold River, and Arden Manor, wants to lower water rates for customers.

The water agency filed paperwork with the California Public Utilities Commission to decrease the rate by 2.88% for metered customers and 2.86% for flat-rate customers. The change, if approved, would take effect July 1, 2018.

Golden State Water made the decision to cut rates after the Tax Cuts and Jobs Act lowered its income tax rate from 35% to 21% on January 1, 2018. Golden State Water may retroactively credit customers if it determines there was a revenue surplus from January 1, 2018-June 30, 2018. It is also adjusting its rate proposal for 2019-2021, which it submitted in July 2017- before the Tax Cuts and Jobs Act was signed into law.

Suburban Water Systems: As noted in this September 24, 2020 California Public Service Commission document:

This Resolution grants Suburban Water Systems’ (Suburban) request in Advice Letter No. 348 the authority to amortize the 2019 amount of $289,879 or 0.34% of authorized revenues, recorded in the Tax Cuts and Jobs Act Memorandum Account (TCJAMA) related to the 2019 excess accumulated deferred federal income tax (ADFIT) not reflected in rates for the period January 1, 2019 through December 31, 2019. The 2019 balance of the TCJAMA will be amortized as a single monthly bill credit based on the customer’s meter size. The credit amount includes interest and is to refund the excess ADFIT related to 2019 revenue requirement not currently reflected in rates.

San Jose Water Company: As noted in this January 16, 2020 California Public Service Commission document:

This Resolution grants San Jose Water Company’ (SJWC) request in Advice Letter No. 537 & 537A, the authority to refund the over collected amount of $6,624,690 for the period January 1, 2018 through December 31, 2018, or 1.75% of authorized revenues,recorded in the 2018 Tax Accounting Memorandum Account (TAMA). The balance is associated with changes in tax expenses resulting fromTax Cut and Jobs Act signed into law December 22, 2017 that among other matters reduced the federal corporate tax rate from 35% to 21% effective January 1, 2018. The TAMA should be closed and the balance transferred to a 2018 Tax Accounting Balancing Account to amortize the refund. The 2018 balance in the TAMA will be refunded as a one-time bill credit based on the customer’s meter size. The bill credit is effective beginning on January 21, 2020 as shown below. Any over or under refunded balance in the 2018 Tax Accounting Balancing Account once the amortization period concludes should be addressed in the context of SJWC’s 2022 Test Year general rate case.

California American Water Company: As noted in this December 13, 2018 American Water press release:

The California Public Utilities Commission (CPUC) today approved a decision in the company’s general rate case for new water and wastewater rates for customers statewide.

The company’s rate request, which was filed in July 2016, will set rates through 2020. The decision approves approximately $103 million in capital investment in infrastructure replacements and improvements in 2018 and 2019.

“We are extremely proud of our significant level of system investment, combined with operational efficiency measures and innovative technologies, to ensure continued water quality, service reliability and fire protection for the more than 600,000 Californians who depend on us every day,” said Rich Svindland, President of California American Water. “This decision enables us to continue this important work on behalf of our customers, while balancing the cost impact for them.”

The decision approves a $10.3-million annual increase in authorized water and wastewater revenues for California American Water compared to previously authorized rates in the fall of 2016. The increase reflects savings generated by changes in federal tax law from the 2017 Tax Cuts and Jobs Act and the 2018 Cost of Capital decision.

California-Oregon Telephone Company: As noted in this August 9, 2018 California Public Service Commission document:

Staff has recalculated the tax impact of the TCJA to include the excess deferred tax impact. Prior to the enactment of the TCJA, Cal-Ore’s deferred income tax liability balance was $1,182,356. On January 1, 2018, the new tax rate of 21% resulted in deferred income tax of $730,279 causing an excess deferred tax reserve of $452,077. This $452,077 should be returned to ratepayers ratably over the remaining life of the assets that gave rise to the excess tax reserve balance. The TCJA provides guidance for the return of the excess deferred tax reserve under normalization rules. In summary, the TCJA rules say that if the excess deferred taxes are to be reduced, they should be reduced no faster than using the average rate assumption method (ARAM). But if the utility does not have the appropriate vintage data to use ARAM, an alternative method based on a composite rate is allowed.

As a result, Staff recommends the $452,077 excess deferred income tax reserve should be returned to ratepayers over the weighted average of the remaining useful life of Cal-Ore’s depreciable assets as of December 31, 2017. Appropriately, as the excess deferred tax reserve is returned to Cal-Ore’s ratepayers, rate base will be incrementally increased by $33,737 per year (as the $452,077 excess remaining in the deferred tax account will be incrementally decreased as it is returned to ratepayers).

Southern California Edison: As noted in this August 16, 2018 San Diego Union-Tribune article:

Representatives from Southern California Edison told the Union-Tribune the utility is reducing the total revenue it is requesting before the CPUC in its general rate case by about $139 million this year, about $185 million in 2019 and $235 million in 2020, largely due to the tax cut.

Without the legislation, Edison expected residential customers would see an average monthly increase of $1.51 a month this year, $5.01 in 2019 and $6.83 in 2020.

With the tax cut, the figures would drop to a 6-cents decrease per month in 2018, a $3.98 increase in 2019 and a $5.56 increase in 2020, based on average monthly usage of 550 kilowatt-hours.

San Diego Gas & Electric: As noted in this January 2020 Energy Division document:

Sempra GRC Gas Highlights:

Disallowed SDG&E’s request to use 2018 tax savings from Tax Cuts & Job Act (TCJA) to offset expense for helicopter for fires and liability insurance, and to refund the $12 million tax savings to ratepayers over 2 years

Calaveras Telephone Company: As noted in this August 23, 2018 California Public Service document:

Staff recalculated the tax impact of the TCJA to include the excess deferred tax impact. Prior to the enactment of the TCJA, Calaveras’ deferred income tax liability balance was $145,643. On January 1, 2018, the new tax rate of 21% resulted in deferred income tax of $89,956 causing an excess deferred tax reserve of $55,687. This $55,687 should be returned to ratepayers ratably over the remaining life of the assets that gave rise to the excess tax reserve balance, The TCJA provides guidance for the return of the excess deferred tax reserve under normalization rules. In summary, the TCJA rules say that if the excess deferred taxes are to be reduced, they should be reduced no faster than using the average rate assumption method (ARAM).

Accordingly, Staff has adjusted the $55,687 excess deferred income tax reserve and returned it to ratepayers over the weighted average of the remaining useful life of Calaveras’ depreciable assets as of December 31, 2017. Appropriately, as the excess deferred tax reserve is returned to Calaveras’ ratepayers, rate base will be incrementally increased by $10,507 per year (as the $55,687 excess remaining in the deferred tax account will be incrementally decreased as it is returned to ratepayers).

Sierra Telephone Company: As noted in this August 9, 2018 California Public Service Commission document:

Staff has recalculated the tax impact of the TCJA to include the excess deferred tax impact. Prior to the enactment of the TCJA, Sierra’s deferred income tax liability balance was $5,131,347. On January 1, 2018, the new tax rate of 21% resulted in deferred income tax of $3,169,361 causing an excess deferred tax reserve of $1,961,986. This $1,961,986 should be returned to ratepayers ratably over the remaining life of the assets that gave rise to the excess tax reserve balance. The TCJA provides guidance for the return of the excess deferred tax reserve under normalization rules. In summary, the TCJA rules say that if the excess deferred taxes are to be reduced, they should be reduced no faster than using the average rate assumption method (ARAM). But if the utility does not have the appropriate vintage data to use ARAM, an alternative method based on a composite rate is allowed.

As a result, Staff recommends the $1,961,986 excess deferred income tax reserve should be returned to ratepayers over the weighted average of the remaining useful life of Sierra’s depreciable assets as of December 31, 2017. Appropriately, as the excess deferred tax reserve is returned to Sierra’s ratepayers, rate base will be incrementally increased by $316,449 per year (as the $316,449 excess remaining in the deferred tax account will be incrementally decreased as it is returned to ratepayers).

Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.

Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.

Posted by Isabelle Morales on Monday, June 14th, 2021, 3:05 PM PERMALINK Follow @IsabelleAliciaa

The IRS failed to screen two-thirds of agency contractors for tax delinquencies and other errors, according to a new TIGTA report. This serves as yet another example of the IRS’s inability to complete basic tasks, even when it is required of them.

This report comes at a time when the Biden administration has proposed $80 billion in more funding for the agency, along with new powers and responsibilities. This report is just another example of the agency’s incompetency and demonstrates that the IRS needs reform, not more power and responsibility.

TIGTA reviewed 71 randomly selected new awards and found that 66 percent had one or more deficiencies related to the contractor tax check process. Based on sample results, TIGTA estimated that 2,435 of the 3,679 new award contracts granted between October 1, 2018, and March 30, 2020, have one or more of these errors identified.

In the Consolidated and Further Continuing Appropriations Act of 2015, Congress specified that the Government “will not enter into a contract with any corporation that has any unpaid Federal tax liability that has been assessed, unless an agency has considered suspension or debarment of the corporation and made a determination that suspension or debarment is not necessary to protect the interests of the Government.”

In TIGTA’s words:

“… not completing tax checks within the required time frame increases the risk that an offeror’s recently incurred tax liability will not be identified during the tax check process… untimely or incomplete notification to the Treasury Suspension and Debarment official increases the chances that contractors with a tax deficiency will obtain a contract award with another Federal agency.”

This tax check is a multi-step process that the IRS simply did not complete for multiple contractors. In the sample TIGTA used, the IRS failed to complete checks on 25 percent of the contract awards selected. Further, 29 percent of contracts did not have a signed Tax Check Notice and Consent provision, and 37 percent did not have a Tax Check Notice and Consent provision attached to the contract.

While TIGTA did independently verify that the 71 contractors did not have any delinquent Federal taxes at the time the contracts were awarded, the IRS would still be required to assess these delinquencies and make determinations based on them. To be clear, this was just a review of 71 of the 3,679 new award contracts; it is untold how many contractors had delinquent federal taxes out of the 2,435 contracts TIGTA estimates had errors. Moreover, given that TIGTA was able to screen all these candidates, presumably, it should not be difficult for the IRS to do the same.

This is one of several audit reports that demonstrates the incompetence of the IRS:

The agency has repeatedly failed to compile legally required tax complexity reports. These reports are supposed to contain the IRS's specific recommendations on how to make the tax code easier to comply with. Since 1998, the IRS has done so just twice – in 2000 and 2002.

A TIGTA report on the 2021 Filing Season found that almost 40 percent of printers were not working at tax processing centers in Ogden, Utah and Kansas City, Missouri. However, in many cases the only thing wrong with the printers is that no employee had replaced the ink or emptied the waste cartridge container: “IRS employees stated that the only reason they could not use many of these devices is because they are out of ink or because the waste cartridge container is full.”

This year, despite having funding for new hires, the IRS only achieved 37 percent of their hiring goal. They had trouble onboarding new hires as well, as it was “difficult to find working copiers (as noted previously) to be able to prepare training packages.”

In 2016, the IRS has lost track of laptops containing sensitive taxpayer data. TIGTA estimates that the IRS had failed to properly document the return of 84.2 percent, or more than 1,000 computers due to be returned by contract employees.

A TIGTA report in 2017 showed that the IRS rehired more than 200 employees who were previously employed by the agency, but fired for previous conduct or performance issues.

Each year the IRS hangs up on millions of callers -- a practice they refer to as “Courtesy Disconnects.” Currently, if you call the IRS, you have a 1-in-50 chance of reaching a human being.

According to the National Taxpayer Advocate’s 2014 Annual Report to Congress the IRS was unable to justify spending decisions. As the report stated: "The IRS lacks a principled basis for making the difficult resource allocation decisions necessitated by today’s tight budget environment.”

The IRS has repeatedly failed to include required information on notices they send to taxpayers, thus eroding taxpayers’ ability to understand said notices, figure out the right office/number to correspond with, file appeals, etc.

The IRS is required by law to assign a single employee to each taxpayer’s case for mutually generated correspondence, and, in more cases than not, fails to do so.

While the IRS continues to blame its poor performance on a lack of taxpayer funding, the real problem is the inability of the agency to competently complete basic tasks and spend taxpayer dollars in a responsible way. Biden’s plan to give the IRS $80 billion would do nothing to fix existing problems and would only exacerbate them.

Photo Credit: Jason Dirks

Posted by Tom Hebert on Monday, June 14th, 2021, 2:45 PM PERMALINK Follow @tomhebertdc

The Senate will vote this week to confirm Lina Khan to a seat on the Federal Trade Commission.

Khan is a radical left-wing academic that will remake the FTC as a super-regulator of the entire economy and turn the clock back decades on antitrust law.

Senate Republicans should vote NO on Khan’s nomination.

Khan is a leading scholar in the progressive “hipster antitrust” movement to abandon the long-held consumer welfare standard, under which business conduct is evaluated on whether or not it harms consumers. If consumers are not being harmed through tangible economic effects like higher prices or reduced quality products, antitrust enforcement action is not taken.

Instead of protecting consumers, Khan’s approach would turn antitrust law into a weapon wielded equally by inefficient companies and unelected Biden bureaucrats.

According to liberals leading the hipster antitrust movement, big companies are responsible for every social ill under the sun, including racism, poverty, and income inequality, among others. Liberals believe these companies abuse their bigness to stifle competition, cheat rivals, and harm workers. For these reasons and others, antitrust hipsters believe that government enforcers should step in and break these companies up, regardless of how it would impact consumers.

This “big-is-bad” approach is how antitrust law was enforced before the consumer welfare standard was adopted, and it was an abject disaster. Antitrust law’s vague and unfocused nature made all manner of routine business conduct presumptively unlawful. Philosopher-king judges handed down inconsistent rulings designed to punish political enemies or reward political allies. In Supreme Court Justice Potter Stewart’s dissent to United States v. Von’s Grocery, he remarks: “The sole consistency that I can find is that in litigation under [Section 7 of the Clayton Act], the government always wins.”

If confirmed, Khan would be instrumental in moving antitrust law back to this broken tradition. European-style antitrust legislation introduced last week by House Democrats would give the FTC sweeping new power and increased resources to regulate American companies.

If Khan makes it on the FTC, the liberal activist-controlled agency would likely use its rulemaking authority to create substantive new antitrust law, circumventing Congress in the process. In such a hostile regulatory environment, companies afraid of aggressive and predatory antitrust litigation would be less likely to engage in robust competition that delivers low prices and quality products for American shoppers. In this new regime, instead of focusing on what is good for consumers, Biden bureaucrats would focus on what is good for Democrat political gain.

For these reasons, Americans for Tax Reform urges all Senate Republicans to vote against Lina Khan’s confirmation.

Photo Credit: Norman Maddeaux

Posted by John Kartch on Monday, June 14th, 2021, 2:22 PM PERMALINK Follow @JohnKartch

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

If President Biden and congressional Democrats hike the corporate income tax rate, Florida households and businesses will get stuck with even higher utility bills.

Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. 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 officials to pass along the tax savings to customers, including at least seven Florida utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.

Working with the Florida Public Service Commission, Duke Energy Florida, Gulf Power Company, Tampa Electric, Florida Public Utilities Company, Peoples Gas System, Florida Power and Light and Florida City Gas passed along tax savings to their customers.

Florida Power and Light: As noted in this January 17, 2018 WPTV excerpt:

Florida Power and Light customers will not have to pay for Hurricane Irma.

The power company said Tuesday that savings from recent tax reform signed by President Trump will offset any planned costs.

FPL said it will apply its savings to the $1.3 billion in costs from Irma that it had intended to recoup from customers.

Thousands of customers lost power for days and weeks during September because of the hurricane.

The utility had previously announced that it would have to implement a surcharge in March to pay for Irma after a year-long surcharge for 2016's Hurricane Matthew ends in February.

Each of FPL's customers will save an average of $250.

Duke Energy Florida: As noted in this June 11, 2019 Florida Public Service Commission news release:

The Florida Public Service Commission (PSC) today approved Duke Energy Florida, LLC’s (DEF) agreement to apply federal tax savings to offset storm restoration costs for Hurricane Michael, thereby avoiding a surcharge to DEF customers.

DEF had originally requested approval to recover $223.5 million, equating to $6.95 on a monthly 1,000 kWh residential bill for 12 months, beginning in July 2019. This agreement avoids these charges and continues DEF’s use of 2017 Tax Cuts and Jobs Act savings to cover hurricane recovery costs for its customers.

Gulf Power Company: As noted in this October 30, 2018 Florida Public Service Commission news release:

The Florida Public Service Commission (PSC) today ordered Gulf Power Company (Gulf) to pass additional savings from the Tax Cuts and Jobs Act of 2017 to its customers. The Commission approved an additional $9.6 million in customer bill reductions.

As a result, Gulf’s base rates will be reduced by $9.6 million, allowing residential customers to see a monthly bill reduction of $1.11 per 1,000 kWh in January 2019. In addition, Gulf proposes to reduce its 2019 fuel cost recovery amount by $9.9 million. This proposal will be considered at the PSC’s annual cost recovery clause hearing in November.

Tampa Electric: As noted in this March 1, 2018, Tampa Electric press release:

Tampa Electric bills won’t rise to pay for Hurricane Irma restoration costs, thanks to new tax savings. The Florida Public Service Commission (PSC) unanimously approved the measure today.

Because of recent changes made to the federal tax law, customers will directly benefit. What Tampa Electric would have paid in corporate income taxes will instead be used to cover the cost of restoring power after Hurricane Irma and several other earlier named storms. Additionally, Tampa Electric bills will reflect the ongoing benefits from tax reform starting in 2019.

Florida Public Utilities Company: As noted in this January 24, 2019 Chesapeake Utilities Corporation press release:

The Florida Public Service Commission has approved the settlement agreement between Florida Public Utilities Company (FPU), a subsidiary of Chesapeake Utilities Corporation (NYSE: CPK), and the Office of Public Counsel (OPC). The settlement agreement, which was filed on October 17, 2018, reduces electric rates as a result of the federal Tax Cuts and Jobs Act.

“This decision provides an immediate benefit to FPU electric customers, and we are appreciative of the Public Service Commission’s decision to approve our agreement which passes financial savings to customers,” said Jeffry M. Householder, President and Chief Executive Officer of Chesapeake Utilities Corporation. “The federal tax credit combined with declining electricity commodity costs reduces the average FPU residential customer’s total bill, which has remained unchanged from nearly a decade ago.”

FPU residential electric customers will be receiving an average estimated $3.32 decrease on their monthly bills. Commercial electric customers will also receive monthly bill reductions. Reduced rates for FPU electric customers are reflected on their January bills. The terms of the settlement will further reduce the average residential electric bill by an additional estimated $0.45 beginning January 1, 2021.

Peoples Gas System: As noted in this September 12, 2018 Florida Public Service Commission document:

The Florida Public Service Commission (PSC) today approved a Settlement Agreement that will reduce monthly bills for TECO Peoples Gas System (Peoples) customers beginning in January 2019.

A result of the Tax Cuts and Jobs Act of 2017, the Agreement reduces Peoples revenue requirement by $11.6 million annually. The revenue decrease will affect the base rate portion of the bill for all customer classes. For example, a residential customer using a monthly average of 20 therms would see a $1.00 reduction in the base rate portion of the bill.

Florida City Gas: As noted in this December 11, 2018 State of Florida Public Service Commission news release:

The Florida Public Service Commission (PSC) today approved Settlement Agreements for Florida Public Utilities Company (FPUC) and for Florida City Gas (FCG) to implement savings from the Tax Cuts and Jobs Act of 2017.

---

In the Florida City Gas case, the company, OPC, and the Federal Executive Agencies agreed to a 2018 Stipulation and Settlement that will reduce the gas utility’s base rates by a total of $305,000 in January 2019 to reflect ongoing tax savings. Also starting in January 2019, the company’s revenues will be reduced by an additional $305,000 annually for five years to compensate customers for retroactive impacts of the tax law.

Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.

Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.

Posted by Isabelle Morales on Monday, June 14th, 2021, 2:00 PM PERMALINK Follow @IsabelleAliciaa

In a letter to members of Congress, Americans for Tax Reform detailed its opposition to S.1784/ H.R. 3353, the “Contact Lens Prescription Verification Modernization Act” and all other efforts to undermine the Contact Lens Rule.

This bill would eliminate automated phone prescription verification, which guarantees that bad actors cannot refuse to verify prescriptions, thus preventing their patients from buying lenses from other retailers.

This kind of verification is one of the most effective ways to preserve competition. Reeling back this protection would hurt a market that has become more accessible, convenient, and affordable due to steps taken to ensure consumer freedom.

Click here or see below to view the letter.

June 14th, 2021

Dear Members of Congress:

I write in opposition to S.1784/ H.R. 3353, the “Contact Lens Prescription Verification Modernization Act” and all other efforts to undermine the Contact Lens Rule. If implemented, this legislation would undermine the Federal Trade Commission (FTC) Contact Lens Rule that ensures 45 million contact lens users have the choice and freedom to shop where they choose.

This legislation would make it more difficult and more costly for Americans to fill their prescriptions, creating unnecessary financial and healthcare burdens on the American people. All members of Congress should reject this legislation.

In 2003, President George W. Bush signed the Fairness to Contact Lens Consumers Act (FCLCA) into law. The legislation required that optometrists provide patients with a copy of their prescription.

The FTC’s Contact Lens Rule built on the FCLCA, ensuring that consumers have the freedom to purchase contact lenses from wherever they want, whether that is from their optometrists or from a third party. Specifically, the rule required optometrists to obtain signed acknowledgement from patients that they have received a copy of their prescription. It also continued to allow automated phone prescription verification, a feature of the FCLCA, which is one of the most effective ways to preserve competition and consumer freedom.

Rather than forcing a third-party retailer to wait indefinitely for a prescriber to verify the prescription, this requires the retailer to wait a full business day (eight hours) before fulfilling a consumer’s order.

S.1784/ H.R. 3353 seek to end this effective, efficient prescription verification option. This will open the door to bad actors who, before the FCLCA, would refuse to verify prescriptions in the hopes of preventing their patients from buying lenses from other retailers.

Contact lenses have become more accessible, convenient, and affordable because of these steps taken to ensure consumers have a multitude of choices. To reel back the protections which transformed the contact lens marketplace for the better would be a mistake.

While lawmakers should support proposals that lower the regulatory burden and reduce red tape, there should not be concerns that the FTC rule adds to an optometrist’s regulatory burden. The requirements set forth by the rule are modest and easy to comply with. Optometrists are already required to maintain detailed patient records so this new verification should require little if any increase in resources in order to comply with.

The Contact Lens Prescription Verification Act, and other efforts to undermine the Contact Lens Rule should be rejected. The legislation would undermine patient freedom by chipping away at their right to purchase contact lenses from optometrists or a third party. Passing this legislation now, while the economy is still recovering, would increase costs and reduce healthcare choice and access for Americans across the country.

Onward,

Grover G. Norquist President, Americans for Tax Reform

Photo Credit: Marco Verch Professional Photographer

Posted by John Kartch on Monday, June 14th, 2021, 12:39 PM PERMALINK Follow @JohnKartch

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

If President Biden and congressional Democrats hike the corporate income tax rate, Arkansas households and businesses will get stuck with even higher utility bills.

Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. 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 officials to pass along the tax savings to customers, including at least six Arkansas utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.

Working with the Arkansas Public Service Commission, Black Hills Energy, Entergy Arkansas, Center Point Energy, Oklahoma Gas & Electric, Southwestern Power Electric Company and Arkansas Oklahoma Gas passed along tax savings to their customers.

Entergy Arkansas: As noted in this February 28, 2018 Entergy Arkansas press release excerpt:

Customer bill credits will begin in April so customers will begin to benefit almost immediately and prior to summer when usage is typically higher.

Residential customers will see a savings of an estimated $20 per month for every 1000 kWh consumed from April 2018 to December 2019.

Business customers also will see significant bill reductions, allowing them to reinvest those savings into their business in 2018 as they deem appropriate.

Other effects of the TCJA are being considered in a docket opened by the APSC, and we expect those customer benefits to be reflected in future rate changes.

Center Point Energy: As noted in this August 28, 2018, Northwest Arkansas Democrat Gazette article excerpt

CenterPoint Energy, the largest natural gas utility in the state with more than 400,000 customers, has proposed to reduce its rates by $19.2 million beginning in October.

CenterPoint filed the request with the Arkansas Public Service Commission on Friday in response to an order by the commission to reduce rates as a result of the federal tax law change passed in December. Congress passed the Tax Cuts and Jobs Act that reduced the corporate tax rate from 35 percent to 21 percent.

If the commission approves the lowered rate, Houston-based CenterPoint's rates would drop 9.5 percent on bills from October to January and 7.3 percent in January. For a customer with a bill of $100, it would fall to $90.50 under the first scenario and to $92.70 under the second scenario.

"Tax reform is a win for customers and reduced costs are being returned to them through various mechanisms or rate proceedings within each of our operating jurisdictions," said Alicia Dixon, CenterPoint's spokesman.

Black Hills Energy: As noted on the Black Hills Energy website:

Arkansas customers served by Black Hills Energy are seeing the benefits of the federal corporate tax rate reduction from 35 percent to 21 percent. These benefits first appeared on customers’ October 2018 bills. A typical residential customer will receive a monthly refund of about $4.64 per month ending in the middle of May 2019.

The total amount of cost-savings related to the Tax Cuts and Jobs Act for Arkansas customers is $8.2 million.

Oklahoma Gas & Electric: As noted in this Oklahoma Gas & Electric press release:

OG&E today announced that its average Arkansas residential customer will see approximately $113 in savings on upcoming electric bills.

In October, customers will see a credit of approximately $57 on their electric bill. Then, beginning in November, customers will see a credit of approximately $4 per month through the end of 2019. The savings are made possible by the reduction in corporate tax rates approved by Congress and signed by President Trump in December 2017.

“We’re pleased to pass on to our customers the benefits of tax savings that resulted from the Tax Cuts and Jobs Act,” said OG&E spokesman Brian Alford.

The credit will be noted on October bills as “Tax Cuts and Jobs Act Credit.”

Arkansas Oklahoma Gas: As noted in this October 9, 2018 Arkansas Public Service Commission document:

The purpose of this rider is to provide customers with certain tax benefits associated with the Tax Cuts and Jobs Act of 2017 (TCJA). The TCJA reduces the maximum corporate income tax rate from 35% to 21% beginning January 1, 2018. TA flows back to customers the net impact of the lower corporate income tax rate that includes annual tax savings, as well as changes to Accumulated Deferred Income Tax (ADIT) amounts. An adjustment for WNA impact for January 2018 through April 2018 will be included in the 2018 TA Rates.

TA applies to all natural gas service provided under any rate schedule, including rates under Special Contracts, subject to the jurisdiction of the Arkansas Public Service Commission.

Monthly credits shall appear as a line item on the bill titled, “Tax Cuts & Jobs Act Credit.”

Beginning with the November 2018 billing month through the December 2018 billing month, all retail base rates will be decreased by the amounts listed in Attachment A. The rates include carrying charges, calculated using the pre-tax rate of return approved in the Company’s most recent rate case in Docket No. 13-078-U, for the over collection in tax expense from January 1, 2018 until the date this rider became effective.

Southwestern Power Electric Company: As noted in this February 5, 2020 Arkansas Public Service Commission document:

On January 31, 2020, Southwestern Electric Power Company (SWEPCO) filed with the Arkansas Public Service Commission (Commission) proposed revisions to Rate Schedule 49, Federal Tax Cut Adjustment Rider (FTCA Rider) and the Supplemental Direct Testimony and Exhibits of Shawnna G. Jones.

Ms. Jones testifies that the total true-up amount due to Arkansas retail customers is an additional refund of $s,866,955 with carrying charges in the true up resulting in an additional refund of $321,726. She requests that the Commission approve Rider FTCA to be in effect for the March 2020 billing month that begins on February 28, 2020. Other than the true-up revisions to Rider FTCA, Ms. Jones testifies that SWEPCO proposes additional language to Rider FTCA that any residual amounts, after the refund is applied in March 2020, will be included in SWEPCO's next Energy Cost Recovery Rider filing with interest. Ms. Jones testifies that the bill impact to an average Residential customer using 934 kWh per month is a credit of $22.91 or a 23.28 percent decrease to total monthly bill. She states that SWEPCO will reflect the true-up as a separate line item on the customer bills labeled "Tax Cuts & Jobs Credit." Jones Supplemental Direct at 6-9.

---

On the basis of the evidence currently before the Commission, namely, the testimony and exhibits filed herein by SWEPCO and Staff, the Commission approves SWEPCO's Rate Schedule No. 49 filed on January 31, 2020, as Supplemental Direct Exhibit SGJ-2, to become effective for bills rendered on or after February 28, 2020, and remain in effect until March 31, 2020.

Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.

Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.

Posted by Tom Hebert on Friday, June 11th, 2021, 3:00 PM PERMALINK Follow @tomhebertdc

Congressman David Cicilline (D-R.I.) has spearheaded of antitrust bills with several Democrat sponsors that would fundamentally rewrite antitrust law to the detriment of American shoppers.

Cicilline is attempting to use conservative anger at Big Tech to persuade Republican lawmakers into giving the Biden Administration nearly unchecked power to regulate the entire economy. Many of these bills import European competition policy that has no precedent in American law.

Make no mistake about it - these bills do nothing to address conservative concerns with Big Tech censorship. These bills are hardly antitrust bills. Taken together, these bills are a test run for unelected Democrats to regulate entire sectors of the American economy.

Republicans should reject all of the below legislation:

H.R. 3826 – Platform Competition & Opportunity Act, sponsored by Rep. Hakeem Jeffries (D-N.Y.)

The Platform Competition & Opportunity Act prohibits a handful of “covered” tech companies from acquiring software businesses. This bill will hamstring innovative businesses from making acquisitions that enable them to better compete with rival firms, improving choice and access to goods and services for all Americans in the process.

If implemented, this bill would erode our competitiveness on the global stage at a time when Congress just passed a $250 billion piece of legislation that is supposed to boost our competitiveness with China. It would also close off a critical pathway to success for small startups, half of which say their most realistic long-term goal is to be acquired by a larger firm.

H.R. 3816 – American Choice and Innovation Online Act, sponsored by Rep. David Cicilline (D-R.I.)

The American Choice and Innovation Online Act would effectively ban covered platforms from selling or promoting their own private label products.

So-called “self-preferencing,” where businesses promote their own private label products next to brand name products, is not endemic to platform companies. Brick-and-mortar stores often promote their own generic goods on shelves next to brand-name goods, or with promotional devices like end-caps and window displays.

Enacting a line-of-business restriction for platform companies would take away valuable products and services that shoppers value. Banning Amazon from selling AmazonBasics products is equivalent to banning Costco from selling Kirkland products - it makes no sense.

The bill would also force platform companies to share sensitive personal user information with third parties, including app developers and foreign software. At the same time, the bill prohibits platforms from removing third-party sellers from their marketplaces.

This would force platforms to host malicious apps and then share personal information of American consumers with the developers.

H.R. 3842 – Merger Filing Fee Modernization Act, sponsored by Rep. Joe Neguse (D-Colo.)

The Merger Filing Fee Modernization Act would substantially increase the resources of the Biden FTC controlled by left-wing activists like Acting Chair Rebecca Slaughter and potential Commissioner Lina Khan.

This bill will expand the budget of the FTC at a time when the agency seems likely to use rulemaking authority to effectively create new substantive antitrust law, circumventing the legislative process and potentially implementing policy that Congress itself is unwilling to pass. The legislation will give money to unelected bureaucrats who intend to use the additional resources not just how they see fit, but to circumvent Congressional gridlock and input on antitrust law.

H.R. 3825 – Ending Platform Monopolies Act, sponsored by Rep. Pramila Jayapal (D-Wash.)

The Ending Platform Monopolies Act imposes structural separations on covered platforms that operate businesses that may create a "substantial incentive" to disadvantage competitors. Companies would have two years from their designation as a covered platform to sell off businesses that violate this bill's stringent requirements. If they fail to comply, "any person" involved with the company could face strict civil penalties of up to 30 percent of a year's revenue.

H.R. 3849 – ACCESS Act, sponsored by Rep. Mary Gay Scanlon (D-Penn.)

The ACCESS Act would force a few covered platform companies to disclose all their consumer data to competitors via a government-mandated “interface.” The bill would create massive privacy and liability issues, as companies would lose the ability to apply their own data security measures to information once it is imported to another platform. This would provide malicious hackers or criminals with a prime opportunity to circumvent security protocols implemented by certain platforms to access sensitive consumer data.

Additionally, the ACCESS Act requires companies to petition the FTC to make any changes to interoperability standards. The FTC can deny requests based on any reason related to “undermining interoperability.”

Taken together, these bills massively increase government power to regulate the economy. If passed into law, Biden bureaucrats would win, American shoppers would lose.

Republican lawmakers need to vote NO on all five of these bills.

Photo Credit: House Democratic Caucus

Posted by John Kartch on Friday, June 11th, 2021, 2:57 PM PERMALINK Follow @JohnKartch

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

If President Biden and congressional Democrats hike the corporate income tax rate, Washington households and businesses will get stuck with even higher utility bills.

Democrats plan to impose a corporate income tax rate increase to 28%, even higher than communist China's 25%. 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 officials to pass along the tax savings to customers, including at least five Washington utilities. The savings take the form of either a rate reduction, or, a reduction to an existing/planned rate increase.

Working with the Washington Utilities and Transportation Commission, Avista Corporation, Puget Sound Energy Inc., Cascade Natural Gas, Pacific Power and Light and Northwest Natural Gas Company passed along tax savings to their customers.

Puget Sound Energy Inc.: As noted in this April 30, 2018 The Seattle Times excerpt:

Puget Sound Energy (PSE) says it will pass all of a $96.5-million cut in federal taxes on to electric and natural gas customers.

The tax savings will cut residential electric bills by $3.50 a month and trim natural gas bills by $1.83 a month, according to a written statement from the organization. Those rate adjustments will take effect Tuesday.

Pacific Power and Light: As noted in this December 22, 2020 DailyEnergyInsider excerpt:

The first general rate case filed by Pacific Power in Washington since 2014, it also accelerates pass-through of remaining federal tax savings from the 2017 Tax Cuts and Jobs Act (TCJA) and depreciation of coal plant investments to remove coal, almost doubles the amount of wind generation being brought to Washington, establishes an advisory committee to oversee the development of new assistance programs for low-income customers and creates a new, flattened rate structure.

Cascade Natural Gas: As noted in this December 2019 Tri-Cities Area Journal of Business excerpt:

Rate changes for Cascade primarily are due to the purchased gas cost and decoupling mechanism, but they also include cost recovery for pipeline replacement, conservation programs, low-income assistance, and refunds related to excess deferred income taxes due to the Tax Cuts and Jobs Act. Kennewick-based Cascade serves more than 220,000 residential and business customers in 68 communities throughout the state, including Kennewick, Walla Walla, Sunnyside, Yakima, Wenatchee, Aberdeen, Bellingham, Bremerton, Longview, Moses Lake and Mount Vernon.

Northwest Natural Gas Company: As noted in this Northwest Natural Gas Company document:

The Order authorizes NW Natural to provide federal tax reform benefits to customers related to the Tax Cuts and Jobs Act enacted in December 2017. The Order directs NW Natural to provide customers with a rate reduction of $2.1 million over one year to reflect the benefit of the lower federal corporate income tax rate accumulating from January 1, 2018 through October 31, 2019, and provides an additional annual rate reduction initially set at approximately $0.5 million to reflect a benefit from the remeasurement of deferred tax liabilities of approximately $15.0 million.

Avista Corporation: As noted in this April 27, 2018 Avista news release:

Avista’s (NYSE:AVA) electric and natural gas general rate cases have concluded, with an order issued by the Washington Utilities and Transportation Commission (Commission or UTC). The Commission approved one-time electric and natural gas rate adjustments which will take effect May 1, 2018.

The Commission’s order approved electric rates designed to increase annual billed revenues by $10.8 million, or 2.1 percent and natural gas rates designed to decrease annual billed revenues by $2.1 million, or 1.6 percent. These revenues include the return to customers through base rates of approximately $26.9 million for electric service, and $5.5 million for natural gas service, as a result of the federal Tax Cuts and Jobs Act, which went into effect on Jan. 1, 2018.

Conversely, a vote for a corporate income tax rate hike is a vote for higher utility bills as households try to recover from the pandemic.

Many small businesses operate on tight margins and can't afford higher heating, cooling, gas, and refrigeration costs. President Biden should withdraw his tax increases.

Posted by Isabelle Morales on Friday, June 11th, 2021, 2:35 PM PERMALINK Follow @IsabelleAliciaa

ProPublica hardest hit

Across all demographic groups, Americans strongly oppose taxing unrealized gains, according to a survey experiment with 5,000 respondents published in May 2021.

The paper, The Psychology of Taxing Capital Income: Evidence from a Survey Experiment on the Realization Rule, is authored by Professor Zachary D. Liscow of Yale University Law School and Edward G. Fox of the University of Michigan Law School.

The researchers found:

"Respondents strongly prefer to wait to tax gains on publicly-traded stocks until sale versus taxing unsold gains each year: 75% to 25%. Though this opposition is strongest among those who are wealthier or own stocks, all demographic groups oppose taxing unsold gains by large margins. This opposition persists and is often strengthened when looking across a variety of other assets and policy framings."

The realization rule requires that property must be sold before gains are taxed. By a margin of 75 to 25, people preferred this rule.

The study also noted popular revolts against the property tax as evidence of the aversion to taxing unsold gains.

They asked participants about how a property tax should handle appreciated assets, noting that:

“In this context, respondents are again hesitant to fully tax gains on assets that have not been sold.”

Survey-takers’ massive rejection of abandoning the realization rule held up even after they heard arguments in favor of this kind of taxation, when they themselves don’t own stock, and even if they’re Democrats.

A primary reason for this is because people use “mental accounting” heuristics, under which they react differently to unsold gains than other ways of getting richer, like wages:

"... These behaviors are often thought to result from people using heuristics that put stocks in different “mental accounts” than money in the bank or wages. Using these heuristics, most people treat stock investments as an “open” mental account until sale and do not fully internalize paper gains or losses."

After all, taxes paid on these assets would have to come from other sources of income, not the asset itself.

The study explains this sentiment further:

"There is significant concern that unsold gains are not yet real in a sense. As shown in Table 4, the word most distinctively associated with opponents is “actual”—as in, taxpayers have not “actually” received income “yet.” Likewise, they note that the stock has not yet yielded “cash,” or anything in the taxpayer’s “hand.”"

Abandoning the realization rule is so unpopular that, even when told that this hypothetical tax would only impact those with over $10 million in wealth, the preference for taxing unsold stock gains only moderately increased by 9 percentage points to 34 percent.

Many on the left including the progressive group ProPublica are suggesting that unrealized gains should be taxed annually.

Senate Finance Committee Chair Ron Wyden (D-Ore.) plans to introduce a bill to tax unsold gains on assets for the rich, in an initiative he calls, “Treat Wealth like Wages.” Another example of this would be the wealth tax, a proposal several Democrats, like Senator Elizabeth Warren (D-Mass.), have proposed.

But as shown by the study, taxing unrealized gains cuts deeply against Americans’ sense of fairness and common sense.

Photo Credit: Stock Catalog