While the recent tax cuts by the Trump administration have plenty of critics who have been predicting economic disaster, the news on its effect has so far been good. Small businesses are reporting optimism in the economy based on the cuts and there is an overall positive feeling around the country. And now, there seems to be another positive trend developing around utility companies.
According to Americans for Tax Reform, the number of electric, gas, and water utilities cutting customer charges due to the recently passed Republican tax cuts has passed 100, and the total savings is about $3 billion.
The pro tax reform group has been tabulating the economic payoff of the tax cuts. They have been using data to chart hundreds of companies that are paying higher wages or bonuses. Now they are adding the data from utility companies and how it benefits customers.
Included in the gathered data are statements from many utility companies that show the general total for cuts to their customers is over $2.8 billion. They also mentioned that hundreds of millions more of added utility expenses won’t be passed on to customers. Several companies directly cited the reason for the rate reductions being the recent tax cuts. The Tax Cuts and Jobs Act cut the corporate rate from 35 percent to 21 percent.
In one direct example of the effects the tax cuts are having, Tampa Electric remarked in a statement that “because of the 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 the cost of restoring power after Hurricane Irma and several other earlier named.”
There are still many who insist that the tax cuts will have negative impacts on the economy but so far, none have materialized. Let’s hope the good news continues.