Tax talk is taking up more than its share of space at Michigan kitchen tables these days.
Many of us are sifting through media reports as we try to make sense of the sweeping federal tax changes proposed in Congress and — most importantly — understand the bottom line for budgets.
Exemptions. Loopholes. Tax brackets. The conversation is complex, the parts are moving quickly and political perspectives can vary wildly.
One positive impact of cutting taxes you may not have considered? Lower energy bills.
Yes, you read that correctly. In Michigan, reducing the federal corporate tax rate would directly result in lower monthly costs for electric and natural gas customers.
Why? Utility customers pay federal taxes for regulated utilities such as Consumers Energy through their monthly bills. That means they would also reap the benefit if corporate taxes were reduced.
In fact, if the proposal to cut corporate taxes to 20 percent becomes law, customers’ bills could be $200 million less per year and $2 billion lower over the next decade versus what they would pay at the current tax rate of 35 percent.
Those are real dollars staying in your pocket.
Real dollars to buy groceries, pay other bills or spend on family fun. Real dollars spent here in Michigan, stimulating our state’s economy and continuing our economic recovery.
Cutting the corporate tax rate isn’t just about raising wages or creating jobs. In this case, it also leads to direct savings in the form of lower monthly utility bills for Michiganians.
president and chief executive officer