Psaki in Deep Denial on Impact of Corporate Tax Rate on Utility Bills

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Posted by ATR on Tuesday, April 13th, 2021, 2:46 PM PERMALINK

Following enactment of TCJA, utility companies across the country worked with state utility commissions to pass along corporate tax rate savings to customers. Americans for Tax Reform has documented over 140 examples. And here is a compilation of national and local television news coverage of same.

The burden of corporate taxes is borne by utility customers, a fact that White House press secretary Jen Psaki seemed to deny today during the press briefing. 

It is uncomfortable for the White House and Democrats to acknowledge that a corporate tax rate hike will be borne by households and small businesses that typically operate on tight margins and have considerable heating, cooling, gas, and refrigeration costs. Just as Americans are digging out from the pandemic, Biden and the Democrats are there to whack them with higher costs.

Let's look at four citations post-TCJA:

Example 1:
 
“The tax law will result in lower bills for our customers and lower taxes for Pepco,” said Dave Velazquez, President and CEO, Pepco Holdings, which includes Pepco. – Jan. 5, 2018 Pepco press release


Example 2:

The legislation cuts the federal corporate income tax rate from 35% to 21% effective January 1, 2018. This tax cut, in turn, reduces the cost of service for many of Virginia’s major electric, gas and water utilities.  – January 8, 2018, Virginia SCC Press Release

Example 3:

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.- August 24, 2018 Arizona Corporation Commission press release

Example 4:
 
The Pennsylvania Public Utility Commission (PUC) today issued an Order, requiring a “negative surcharge” or monthly credit on customer bills for 17 major electric, natural gas, and water and wastewater utilities, totaling more than $320-million per year. The refunds to consumers are the result of the substantial decrease in federal corporate tax rates and other tax changes under the Tax Cuts and Jobs Act (TCJA) of 2017, which impacted the tax liability of many utilities. -- May 17, 2018 Pennsylvania Public Utilities Commission Press Release
 

Click here to see 140 documented examples of utilities passing along savings from the corporate tax rate cut with the Tax Cuts & Jobs Act.

 

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