Plan to expand sales tax in NC

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GREENSBORO, N.C.-- North Carolina's top Republicans have a plan to cut income taxes, but to do so they plan on adding on a sales tax to hundreds of services.

The plan calls for cutting the income tax rate from 7.5% to 4.5% over the next three years.  The corporate tax rate would decrease from 6.9% to 6%.

The sales tax would be added to nearly 130 services customers including bowling, hair cuts, nail services, pet grooming and massages.

"I think it would have a big impact on our industry," explained Bill Norman, owner of Kneaded Energy in Greensboro.

Norman feels his customers would feel the extra cost.

"I think they've got a specific set of money set aside for their purchase, and that money would have to come off of somewhere whether it's gratuity for our employees. We certainly couldn't reduce our prices to pay that additional tax," Norman explained.

If passed, this would make North Carolina's sales tax base one of the broadest in the country.