Under the Dome is reporting that the NC Senate has proposed as part of their finance package increase the sales tax on electricity from its current rate of 3% to the sales tax rate of 6.75%.
Basically, a $1 billion tax increase on every household and business in North Carolina.
But this gets better… As part of the incentive package to lure Google to the state, the General Assembly passed a law waiving the electricity sales tax for "data centers." So if this proposal becomes law, the incentive package for Google and now Apple will increase dramatically.
If you'll recall, the estimated tax savings on electricity for Google was $89 million over 30 years. This proposal would push that savings to roughly $200 million. For Apple, the savings is considered even higher.
A potentially half-billion dollar giveaway to two multi-billion corporations while every household and business pays higher taxes. Is this really the best way to foster economic growth?