According the numbers being touted as tax savings, supposedly a married couple with two children earning $60,000 a year will pay $84 less in income taxes with the implemented tax reform. However, with the increase in tax on electricity, I don’t see the savings.
Assuming an average electric bill of $80 per month (which I’m sure is low if you have air conditioning), the utilities commission approved a 5.5 percent rate increase, which takes that monthly bill up to $84 or $48 more per year. The tax reform bill raised the tax on electricity an additional 3.5 percent, which, at $3 more per month, totals $36 a year. These two increases total $84 – in other words, that family merely breaks even.
I think it would be better if the legislature looked at the whole picture, rather than touting misleading minor income tax cuts for the middle class. The tax reform’s real effect is in the higher earnings brackets.