Democratic lawmakers largely united on NC tax plan

RALEIGH — Senate Democrats are willing to go with a plan to raise nearly $1 billion in taxes to reach a North Carolina budget agreement with the House.

Senators leaving their party caucus Wednesday said they can accept a deal to raise the sales tax rate by a penny, add extra 2 percent onto income tax bills and increase the cost of a pack of cigarettes by 10 cents. Alcohol taxes also would go up.

Sen. David Hoyle of Gaston County says his Senate colleagues would have preferred increasing the number of services subject to the sales tax while lowering overall rates.

The House still must go along with the plan. Some House Democrats have been opposed to raising so-called “sin” taxes. House Democrats meet Wednesday afternoon.

(Copyright 2009 by The Associated Press. All Rights Reserved.)