fbpx

Latest Posts

Home

Facebook

Twitter

Search
About

Don’t Forget, Trump’s Tax Cuts Brought Down Your Electricity Bill

Despite what its detractors say, the Tax Cuts and Jobs Act passed last year has been an unqualified success. Unemployment is at its lowest rate since 1969, wages are rising in critical industries like manufacturing, and we now have a situation where employers are struggling to find employees, not unemployed people struggling to find jobs.

Economic gains were part of the sales pitch for the tax cuts, but Minnesotans have also experienced a host of unexpected benefits from them, including refunds from electric utilities.

Because the tax cuts reduced the corporate tax income tax rate from 35 percent to 21 percent, Xcel Energy had $136 million in tax savings that are being passed on directly to its customers.

According to the Strib, Xcel’s average residential electricity customer — someone who pays $85 to $90 per month — will get a refund of about $45 as a one-time bill credit. The company’s average residential gas customer — who pays around $48 a month — will get a one-time bill credit of about $8. Xcel said it expects the refunds will be made by year’s end.

Don’t forget, electric utilities aren’t really private companies, they are government approved monopolies, meaning they are guaranteed to make profits, even when they make poor investment decisions like replacing existing, affordable power plants with more expensive and less efficient sources of electricity.

“It’s money ratepayers paid that they should not have had to pay,” said Dan Lipschultz, a member of the Minnesota Public Utilities Commission (PUC).

So the next time you hear someone say they didn’t personally benefit from the tax cuts bill, you can point to at least one concrete example of how they saved about 4.4 percent on their electric bills directly because of the tax cuts.

Comments

Subscribe

Categories

Upcoming Events

  • Morning in Minnesota: St. Cloud

    Location: St. Cloud

    Sign up HERE! Courtyard by Marriott St. Cloud 404 West Saint Germain Street St. Cloud, MN, 56301 Please join Center of the American Experiment on Tuesday, July 21 for breakfast with Center policy fellow and education expert Catrin Wigfall as she explains K-12 education in the state and its persistent disparities despite decades of increased spending. Following her presentation, Catrin will lead a Q&A session. 7:30 AM Check In and Breakfast 8:00 AM Presentation 9:00 AM Conclude   Catrin Wigfall is a Policy Fellow at Center of the American Experiment. She is also the director of EducatedTeachersMN and EmployeeFreedomMN. Catrin’s…

    Register Now
  • Kristi Noem: The Courage to Reject a Shutdown

    Location: Online

    Sign up HERE! Join us Wednesday, July 8th for an interview with South Dakota Governor Kristi Noem over Zoom. In response to COVID-19, Noem defied the norm of a statewide shutdown and let South Dakotans choose for themselves what safety precautions to take. Tune in to this live online event to hear how Governor Noem preserved her state’s economy while still keeping citizens safe. Wednesday, July 8th at Noon CT Sign up HERE!  

    Register Now
  • Morning in Minnesota: Marshall

    Location: Marshall Golf Club

      Sign up for this event HERE! Please join Center of the American Experiment on Thursday, July 16 at Marshall Golf Club for a breakfast with Center economist, John Phelan, as he discusses Minnesota’s economic future. Following his presentation, John will lead a Q&A session. 7:30 AM Check In and Breakfast 8:00 AM Presentation 9:00 AM Conclude John Phelan is a graduate of Birkbeck College, University of London, where he earned a BSc in Economics, and of the London School of Economics where he earned an MSc. He worked in finance for ten years before becoming a professional economist. He…

    Register Now