Due to the Tax Cuts and Jobs Act, a major electricity company in Washington D.C. and Maryland has decided to cut rates for customers. In a statement recently released, the company, Pepco (Potomac Electric Power Company), shared that the cut rates will affect 296,000 customers as a result of the federal tax reductions under the Tax Cuts and Jobs Act which was signed into law in December.
The decrease in the corporate rate tax that Pepco will be responsible for will go from 35% to 21%, lowering the amount of income tax that the company will have to pay.
“The tax law will result in lower bills for our customers and lower taxes for Pepco,” said President and CEO of Pepco Holdings, Dave Velasquez. “We are pleased to provide these savings to our customers, while at the same time making sure we are making prudent investments in the local power grid to maintain the safe, reliable and affordable service our customers have come to expect.”
Pepco’s planned rate reduction will have to be approved by the Public Service Commission for the District of Columbia, considering it is a regulated monopoly. Although the long-term effects will take a while to be seen, Pepco’s decision is proof that the lower corporate tax rate in the Tax Cuts and Jobs Act will have some instant perks for middle-class families.
The Tax Cuts and Jobs Act has also allowed over 30 U.S. businesses to raise their wages or benefits for their employees. Some of the included companies are Southwest Airlines, Aflac, and Wells Fargo.
The act managed to pass without a single Democratic vote in either the Senate or the House.
Commenters had a lot of opinions to share about the Act…
“Electric energy providers across the U.S. should be lowering rates, especially now that many costly Obama restrictions have been removed. Waiting to see an across the board rate cut by all electricity providing utilities. Except in California of course.”
“Most likely the money these people save will be spent on goods or services they otherwise would not buy which means taxes on the purchases goes to the government. The rich (politicians, Hollywood elite etc…) have no clue what it’s like to live as an average American. They think a few dollars here or there isn’t important. Well, it may not be important to people who have bilked the rest of us out of money by making us pay more taxes for them to use for their pet projects, but we the people like keeping more of our earnings and making our own decisions on how it is spent.”
“And here I thought these tax cuts were supposed to bring on the end of the world as we know it.”
“Yeah, Trump is unstable. Trump is guilty of treason. Trump is going to make the stock market crash. Trump, trump, trump….. Yet another big ”evil” corporation going to give back to its consumers. Wish the other power companies nationwide would do the same. Would be even more impressive. Dems, just take you nerve pills ’cause it’s going to be a 7-year ride!!!!!!!”