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Public utilities and income taxes

Journal Article · · Public Util. Fortn.; (United States)
OSTI ID:6947629
Federal income taxes on public utilities fail to provide adequately for depreciation and the need to develop capital for plant replacement and expansion. The author examines tax deferrals and double taxation on dividends and finds them to be complex and paradoxical. Income taxes, for example, are shown to be borne by customers rather than the corporations or stockholders and are used by the utilities as a way to raise capital. Proposals for construction tax credits or to abolish corporate taxes will neither counteract depreciation caused by inflation nor provide windfall profits for utilities, but they will address inflation. Cancellation of the corporate taxes would require an increase in personal income taxes unless the savings were passed on in the form of price reductions.
OSTI ID:
6947629
Journal Information:
Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 101:10; ISSN PUFNA
Country of Publication:
United States
Language:
English

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