Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Phantom taxes top $5 billion

Journal Article · · Power Line; (United States)
OSTI ID:7060477
Phantom taxes charged by electric utilities reached $5 billion in 1982, leaving the power industry holding an estimated $34 billion in unpaid federal income taxes, or the equivalent of more than $400 for every household. Utilities place their unpaid, or deferred, taxes in special accounts which accumulate over the years. Although they are supposed to be paid to the federal government eventually, they can be used to help finance new power plant construction. As it has worked out, a utility can postpone paying a large portion of its tax liability indefinitely. Congress is considering legislation to correct existing laws that require rate payers to cover expenses as if the utilities had received no tax breaks. H.R. 4923 has broad public support, but is opposed by the power companies and the Edison Electric Institute. Readers are urged to lobby their congressmen in supoprt of the bill. 1 figure. 1 table.
OSTI ID:
7060477
Journal Information:
Power Line; (United States), Journal Name: Power Line; (United States) Vol. 9:9-10; ISSN POLID
Country of Publication:
United States
Language:
English