Hidden Benefit to U.S. Corporate Tax Cuts: Lower Utility Bills

  • Regulated utilities may pass tax liabilities on to ratepayers
  • Consumers may get share of estimated 15% cut to utility tax

Photographer: Daniel Acker/Bloomberg

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There’s one place where every American may benefit from lower corporate income-tax rates: utility bills.

Utilities’ tax burden will be cut by about 15 percent, with customers potentially getting a cut through lower bills and reduced rate increases in the future, estimates Jay Rhame, a portfolio manager at Reaves Asset Management.