Jared Walczak
@JaredWalczak
Senior Fellow, Tax Foundation | President, Walczak Policy Consulting
1.4K Following 6.5K Followers
Illinois Gov. Pritzker is right about the consequences of his action: eliminating the sales tax exemption for data center equipment will make it unprofitable for many data centers to operate.
The exemption isn't a subsidy. It's ordinary sales tax treatment, and without it, effective tax rates on a highly capital-intensive industry with rapid server refresh rates can exceed 100%.
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