On the Tuesday White House press briefing, Press Secretary Jen Psaki was asked whether President Joe Biden is prepared for utility companies to raise prices due to the increase in federal tax.
A reporter asked, “On the President’s tax plans, he has said that individuals, households under $400,000 per year aren’t going to see their taxes go up. Does that also apply to indirect effects from the corporate tax changes that might not technically be tax increases? Look, if an average family of four, making under that amount, sees their heating bill go up because utility companies increased their rates to accommodate the 28 percent corporate tax rate, is that okay or acceptable to the President, because it’s not technically a tax increase?”
Jen Psaki argued, “Well, I would say that there’s no reason that that is what needs to happen. We have evidence of what happens. Back in 2017, when Republicans prioritized tax cuts for big corporations over-investing in working people, there were many arguments made about what the impact would be—…the benefits would be passed on… to consumers, they would invest in R&D, and… would create jobs.”
She continued, “None of that happened. There were stock buybacks, more incentives to offshore, record compensation for executives. We have seen countless studies where the biggest impacts to these corporations would likely be on capital.”
After several more questions from the reporter, Psaki continued to deny that utility price increase is unavoidable despite multiple pieces of evidence that prove the White House wrong.
The Americans for Tax Reform (ATR) called out Psaki’s response as a lie and denial of the truth. The ATR said, “Following enactment of TCJA, utility companies across the country worked with state utility commissions to pass along corporate tax rate savings to customers. Americans for Tax Reform has documented over 140 examples. And here is a compilation of national and local television news coverage of the same. Utility customers bear the burden of corporate taxes, the fact that White House press secretary Jen Psaki seemed to deny today during the press briefing.”
ATR added, “It is uncomfortable for the White House and Democrats to acknowledge that a corporate tax rate hike will be borne by households and small businesses that typically operate on tight margins and have considerable heating, cooling, gas, and refrigeration costs. Just as Americans are digging out from the pandemic, Biden and the Democrats are there to whack them with higher costs.”
At the same time, while they deny these facts, the administration is still struggling to look for solutions to pay for President Joe Biden’s $2.5 trillion spending bill.