We had promised all along that passing the Tax Cuts and Jobs Act would result in more jobs, fairer taxes, and bigger paychecks. And in the few short weeks with our tax bill as the law of the land, over a million hardworking Americans are seeing the benefits. Employees have already been given over $1 billion in bonuses and companies have pledged to invest over $1.5 billion into the U.S. economy.
Another great trend is the savings on families’ utility bills from coast-to-coast as a result of the Tax Cuts and Jobs Act’s lowering of the corporate tax rate from 35 percent to 21 percent.
Last week, Baltimore Gas & Electric announced it was passing approximately “$82 million in annual tax savings to customers, resulting from federal tax cost reductions.” This means the average BGE residential electric customer can expect an estimated $2.31 decrease on their monthly bill, while the average residential combined natural gas and electric customer could see an estimated $4.27 monthly reduction. For families living paycheck-to-paycheck, every dollar counts.
Other public utility companies are following suit. Pacific Power, based in Portland, Oregon, has committed to passing the benefit of its tax cut on to customers. Stefan Bird, Pacific Power’s President and CEO, stated: “The benefit of this tax cut should be passed on to our customers—and we will work with our regulators and stakeholders on the best way to do that.” Similarly, Salt Lake City, Utah-based Rocky Mountain Power and Washington, DC-based Potomac Electric Power Company (Pepco) have pledged to pass some of their federal tax savings on to customers, as well.
Now, in addition to lower taxes and bigger paychecks, American families could be saving money on their monthly utility bills. That’s good news.