Electricity Prices Are Rising Thanks To Tariffs, Clean Energy Cuts, AI
Electricity transmission towers. Getty Images
Residential electricity bills have increased by almost 10% since President Donald Trump was sworn in for his second term as president, according to data from the Energy Information Administration, rising from 15.95 cents per kilowatthour in January to 17.47 cents in May, the latest data available.
The cost of electricity has risen 5.5% over the last 12 months, according to the latest consumer price index data, almost twice as much as the overall cost of living (up 2.7%).
Trump has repeatedly promised to lower utility bills, but multiple reports released this summer blame his moves imposing new tariffs, cutting clean energy sources and supporting the expansion of data centers as reasons for the spikes in price.
Climate think tank Energy Innovation estimates energy provisions in the One Big Beautiful Bill Act, signed into law July 4, will increase wholesale electricity prices by 74% over the next 10 years, leading to a household energy cost increase of $170 annually by 2035.
Tariffs on steel, aluminum and their derivatives stand to increase the cost of construction and maintenance on transmission lines, substations and power plants, likely to be passed onto customers over time, and energy imports from Canada and Mexico are also subject to tariffs.
Trump's support of AI—he has vowed the U.S. will become 'the world capital of artificial intelligence and crypto'—is also fueling the rise of power-hungry data centers, sending the demand for electricity (and its price) soaring.
Get Forbes Breaking News Text Alerts : We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here .
The EIA projects data centers and other commercial users will surpass residential customers in use of electricity for the first time next year.
The bill Trump signed in July stripped away federal support for cheap solar and wind energy production and moved to expand domestic fossil fuel production. The bill phases out tax credits for solar and wind, often now cheaper than gas or coal, and forces utilities to rely more heavily on existing, expensive and nonrenewable power sources. The bill is in line with Trump's stated goals—to use oil, gas, coal and nuclear power to meet the country's growing energy needs—and includes moves like opening up federal lands and waters to oil and gas drilling and slashing royalties that producers pay the government for pumping oil and gas on those lands. Trump has long blasted solar and wind warms, for their visible footprints, the requirement of more land than nuclear, natural gas or coal and their vulnerability to natural disasters, calling wind farms 'unsightly' and 'garbage.' Crucial Quote
'I don't want windmills destroying our place,' Trump said in June. 'I don't want these solar things where they go for miles and they cover up a half a mountain that are ugly as hell.' Big Number
13,939. That's how many megawatts of planned energy generation, enough to power 8.4 million homes, have been lost due to energy projects that were canceled or delayed since Trump's election, according to a new report from advocacy group Climate Power. Contra
Energy Secretary Chris Wright told Politico in an interview published Tuesday that cuts to solar and wind power projects are not causing electricity costs to spike. He said he knows electricity prices are rising, but blamed Obama-Biden policies that resulted in taxpayer money flowing into clean energy projects: "And who's going to get blamed for it? We're going to get blamed because we're in office.' Forbes Trump: Wind And Solar Are 'A Blight On Our Country' By David Blackmon Forbes Trump's Energy Agenda And Its Impact On Clean Technology And Workers By Ken Silverstein Forbes The Cost Of Trump's Tax Plan: Sapping Clean Energy And 790,000 Jobs By Ken Silverstein Forbes How Trump's Energy Secretary Built A $100 Million Fortune By Lily Ogburn
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
3 minutes ago
- Yahoo
Here's What Gives ATI (ATI) a Bright Future
Carillon Tower Advisers, an investment management company, released its 'Carillon Eagle Small Cap Growth Fund' second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter, equity markets experienced one of their most turbulent periods in recent history. Small-cap stocks managed a rebound in the quarter, recovering from declines at the beginning of the year. Among style indexes, the Russell 2000® Growth Index led the way with an 11.96% gain, outpacing the Russell 2000® Value Index, which rose by 4.96%. In addition, please check the fund's top five holdings to know its best picks in 2025. In its second-quarter 2025 investor letter, the Carillon Eagle Small Cap Growth Fund highlighted stocks such as ATI Inc. (NYSE:ATI). ATI Inc. (NYSE:ATI) is an industrial company that engages in the production and distribution of specialty materials and complex components. ATI Inc. (NYSE:ATI) stock fell 23.42% over the past month, while its shares rose 10.29% in value over the last 52 weeks. On August 19, 2025, ATI Inc. (NYSE:ATI) stock closed at $72.05 per share, with a market capitalization of $9.93 billion. Carillon Eagle Small Cap Growth Fund stated the following regarding ATI Inc. (NYSE:ATI) in its second quarter 2025 investor letter: "ATI Inc. (NYSE:ATI) produces specialty metals and alloys for a diversified set of industries, but most notably aerospace and defense. After a period of somewhat challenging operating results in the past year, the company put together a more impressive quarter that exceeded expectations across the board. We believe the company's desirable positioning within an exceptionally tight aerospace specialty alloys market sets it up for a bright future if it can continue executing. We also believe ATI's expo sure to newer-generation aircraft, an accelerating pricing environment, and newly announced contracts with a large OEM customer to which ATI historically has had little exposure all should provide for a positive backdrop going forward." A machinist performing intricate work on a high-temperature resistant alloy for a jet engine. ATI Inc. (NYSE:ATI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 52 hedge fund portfolios held ATI Inc. (NYSE:ATI) at the end of the first quarter, which was 45 in the previous quarter. ATI Inc.'s (NYSE:ATI) second quarter revenue increased 4% year-over-year, to over $1.1 billion. While we acknowledge the potential of ATI Inc. (NYSE:ATI) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In another article, we covered ATI Inc. (NYSE:ATI) and shared the list of best nickel stocks to buy according to hedge funds. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 minutes ago
- Yahoo
Freelanced Too Hard and Got Hit With a Big Tax Bill? How To Handle It, According to a Pro
Question #14 of GOBankingRates' Top 100 Money Experts Series How does freelancing or gig work affect your taxes? The gig economy has exploded over the past decade, with millions of Americans earning income from freelancing, rideshare driving, food delivery and countless other side hustles. But while that extra income feels great hitting your bank account, many gig workers get a rude awakening come tax season. For You: Learn More: Shang Saavedra, founder of Save My Cents and a nationally recognized personal finance expert, has seen this story play out countless times. After helping people navigate financial challenges for more than 19 years, she knows exactly why freelancers and gig workers often face shocking tax bills. But more importantly, she knows how to avoid them. 'If you're self-employed, get ahead of taxes — work with a great CPA and make sure you're taking every qualified deduction available,' Saavedra said. Here's her expert guidance on handling taxes when you're earning income outside the traditional W-2 system. The Hidden Tax That Catches Everyone Off Guard When asked why so many freelancers end up shocked by their tax bill, Saavedra points to a tax that most people have never heard of: self-employment tax. 'When switching from W-2 to freelancer, there's one extra tax you may not be aware of — self-employment tax,' she explained. 'When you were W-2, your employer paid that tax, which is their half of your Social Security and Medicare taxes. But when you're self-employed, you pay both your portion and your self-employed version.' It's true: While W-2 employees split their Social Security and Medicare contributions 50/50 with their employer, self-employed individuals pay the full 15.3% themselves. On top of regular income taxes, this additional burden can turn a profitable side hustle into a financial headache quickly. For example, if you earned $10,000 from freelancing, you're looking at roughly $1,530 in self-employment tax alone, before even calculating your regular income tax obligations. Many gig workers discover this only when filing their returns, leaving them scrambling to cover unexpected bills. Read Next: The Psychology Behind the Shock The tax shock goes beyond just the numbers. In fact, it's psychological. When you're used to receiving a W-2 paycheck with taxes automatically deducted, seeing your full gig income hit your account can create a false sense of wealth. 'You're typically considered self-employed, so you have to actively set aside taxes as you make your income; it's no longer going to be automatically deducted from your paychecks,' Saavedra explained. This shift from automatic tax withholding to manual tax planning requires a complete mindset change. Instead of thinking about your gross freelance income as 'your money,' you need to immediately set aside 25% to 30% for tax obligations. That $5,000 month from your side hustle isn't really $5,000 — it's closer to $3,500 after taxes. Planning Ahead: The Smart Freelancer's Strategy Saavedra's approach to tax planning for freelancers focuses on being proactive rather than reactive. Her strategy involves two key components: professional guidance and quarterly payments. 'Get ahead of it by working with a great CPA to ensure that you are also taking as many qualified deductions as possible by being self-employed,' she recommended. 'There are so many options out there for you to lower your taxable income. Have them help you estimate your taxes so you can pay them quarterly.' Working with a CPA isn't just about filing your annual return; it's about creating a year-round tax strategy. A good accountant can help you identify deductions you might miss, such as home office expenses, internet and phone use, business insurance, and professional development or training costs. The quarterly payment system is equally important. Instead of facing one massive tax bill in April, spreading payments across four quarters means tax obligations are more manageable — and helps avoid IRS penalties. Systems and Tools That Actually Work When it comes to practical tools for managing taxes as a gig worker, Saavedra keeps it simple but effective. 'I use Gusto to run payroll for myself,' she shared. Treating yourself like an employee of your own business helps automate tax withholdings and ensures you're consistently setting money aside. This habit is key to staying organized — and sane — during tax season. Beyond payroll systems, successful gig workers typically use separate business bank accounts, expense-tracking apps and automatic savings transfers to a dedicated tax savings account (again, aiming for 25% to 30% of your income). Having these things in place will help make tax season more bearable. Avoiding the Penalty Trap Beyond the shock of owing taxes, many gig workers get hit with penalties for underpayment. The IRS expects you to pay taxes throughout the year, not just at filing time. If you owe more than $1,000 when you file, you might face penalties unless you've made timely quarterly estimated payments. Saavedra's quarterly payment strategy helps avoid this trap entirely. By estimating your annual tax liability and dividing it into four payments, you stay current with your obligations and avoid surprise penalties. The Deduction Advantage One silver lining of gig work taxation is the expanded deduction opportunities. Unlike W-2 employees who typically take the standard deduction, self-employed individuals can often deduct business-related expenses to significantly reduce their taxable income. Common deductions that gig workers often miss include health insurance premiums (if you're self-employed and pay your own), retirement account contributions and expenses related to your business. (That could mean a car if you drive for rideshare apps, or office equipment if you work from home.) The key here is documentation. Keep receipts, track mileage, log expenses and maintain clear records. When in doubt, ask your CPA whether an expense qualifies as a business deduction. This article is part of GOBankingRates' Top 100 Money Experts series, where we spotlight expert answers to the biggest financial questions Americans are asking. Got a question of your own? You could win $500 just for asking — learn more at More From GoBankingRates Still Paying Off Debt the 'Smart' Way? Dave Ramsey Says That's Exactly Why You're Stuck Frugal Living Expert Michelle Schroeder-Gardner: How I Save Hundreds per Month, One Expense at a Time Are Memberships Worth It? This One Comes with More Than $1K in Annual Benefits 3 Advanced Investing Moves Experts Use to Minimize Taxes and Help Boost Returns This article originally appeared on Freelanced Too Hard and Got Hit With a Big Tax Bill? How To Handle It, According to a Pro
Yahoo
3 minutes ago
- Yahoo
Target's new CEO faces uphill task to gain investor confidence
(Reuters) -Target's appointment of company veteran Michael Fiddelke as CEO did little to enthuse Wall Street analysts as they were pinning their hopes on an outsider to put the struggling retailer back on track. Shares of Target tumbled nearly 11% on Wednesday after the announcement. Fiddelke replaces Brian Cornell, who is set to retire as CEO later this year after nearly 10 years in the role. "I know we're not realizing our full potential right now and so I'm stepping into the role with a clear and urgent commitment to build new momentum in the business and get back to profitable growth," Fiddelke said. Here are some analyst reactions to Target's long-planned CEO appointment: Susannah Streeter, head of money and markets, Hargreaves Lansdown: "Although Michael Fiddelke is likely to be seen as a safe pair of hands, having already overseen a big efficiency drive, the appointment appears to have seriously underwhelmed investors. There may have been hopes that a successor from a rival in the market could have brought extra knowledge, insight and energy, valuable assets at a time of intense competition." Michael Baker, DA Davidson analyst: "Target went with an internal promotion as Brian Cornell officially announced long-expected retirement," which was partly leading to the drop in its shares, said Baker. "That is not a knock on new CEO Michael Fiddelke, who deserves a chance to prove himself. But, that announcement lacks the pop that a significant external hire would provide." Neil Saunders, managing director of research firm GlobalData: "We have very mixed feelings about this appointment. While we think Fiddelke is talented and has a somewhat different take on things compared to current CEO Brian Cornell, this is an internal appointment that does not necessarily remedy the problems of entrenched group think and the inward-looking mindset that have plagued Target for years." Michael Lasser, analyst at UBS: "Many in the market favored an external hire, arguing that would be the only way to re-energize this retailer and jump-start its strategic reinvention. Now, with the company's decision to go internal, we think the market will now likely question how its trajectory could change meaningfully." Joe Feldman, analyst at Telsey Advisory Group: "We are not surprised by the news, given Fiddelke had been groomed to become CEO, evidenced by his multiple leadership roles, including COO and CFO. We expect a smooth leadership transition, although we are unsure of how Fiddelke will change the strategy he helped create."
