After weeks of shrieking that only the rich would benefit, and promises that rampant death would descend upon this country, the reality of the Trump/Republican tax cuts has been shown to be quite the opposite. The news cycle has been filled with companies announcing bonuses for employees, wage hikes on their payroll, and hiring of more staff resulting in expansion and reinvestment.
It is almost as if the charge of CEOs adding wings onto their mansions while the streets became clogged with corpses was a bit of partisan hysteria!
Well, yet another sector of the economy has now shown the new tax policy to be beneficial to citizens — unexpectedly. This week Florida Power and Light (FPL) made a pleasing announcement to those living in the Sunshine State. The electrical provider announced they were going to rescind a planned rate hike in March, that was set to be in place to help compensate for the massive expenses incurred as a result of Hurricane Irma.
Florida Power & Light Co. said Tuesday it will use its federal tax savings under the new tax law to wipe out $1.3 billion in Hurricane Irma-related costs. “The timing of federal tax reform, coming on the heels of the most expensive hurricane in Florida history, created an unusual and unprecedented opportunity,” said Eric Silagy, FPL’s president.
This rollback of the planned rate hike will save residents on average $250.00. Furthermore, next month an existing rate hike that has been in place to cover the expenses of Hurricane Matthew is due to expire, so residents are set to actually see their electricity bills going down. And FPL is not alone in this action.
Other states like Delaware, Utah, and Louisiana could also see either rate decreases or suspension of planned rate hikes. In Washington already three power companies announced changes in 2018 charges as a result of the new tax policy. In Nebraska natural gas prices are due to drop as providers there also have benefitted from the revenue slashing. Michigan may see power and gas prices fall, and Arizona could also benefit.
This list is sure to grow, due to a provision that was included in early December. Senator John Cornyn (TX) worked to have companies listed as Publicly Traded Partnerships to benefit from an additional deduction in the tax plan. Many energy providers across the country are listed as a type of PTP and benefit from this revised deduction plan.
Given the bonuses, new jobs, personal paycheck savings, and now lowering of our utility bills I am beginning to truly enjoy this disastrous and murderous tax cut even more.