Paul Bedard reports in the Washington Examiner that National Grid won’t be alone if it reduces rates to reflect its lower tax burden, owing to the GOP-Trump tax cut that has just gone into effect:
On the heels of companies dishing bonuses of up to $3,000 to over one million workers due to the anticipated benefit of President Trump’s tax reform victory, several major utilities have announced plans to cut rates in a consumer payback related to the lower taxes.
Energy suppliers like Washington’s Pepco, Baltimore Gas and Light, Pacific Power, Rocky Mountain Power and Commonwealth Edison said they plan to give hundreds of thousands of customers a rate cut due to the tax reform.
Again, lowering the cost of doing business lowers the prices that companies have to charge to cover operating expenses and achieve whatever profits they need, which contrary to popular progressive delusion, they can’t just arbitrarily collect.
On the same topic, I asked Lt. Governor Dan McKee’s office whether his call for lower utility rates means he supports the tax reduction. Here’s the response:
Lt. Governor McKee has publicly voiced his concern with the tax bill. One of his major issues with the bill is that it gave the overwhelming amount of tax relief to a very small and select percentage of the population and particularly large corporations. Lt. Governor McKee will use the new law in any way possible to help Rhode Islanders. In that vein, he will continue to pursue the rollback of previously approved and pending National Grid rate increases and encourage others to do the same.
Political rhetoric notwithstanding, one suspects that the former mayor of Cumberland understands that tax cuts in a system in which a relatively small percentage of the population pays the majority of taxes will lead to disproportionate reductions for those who pay the most. One also hopes that the lieutenant governor is cognizant of the fact that his latest initiative plans to take advantage of the relief given to a “large corporation.”
We can only shake our heads, though, that a politician who actually seeks to draw advantage from the effects of legislation from the opposite party seems so moderate.