NC governor offers $1.6B tax plan to end deadlock

RALEIGH — Gov. Beverly Perdue is increasing pressure on lawmakers to pass a budget by offering her own tax plan to raise $1.6 billion this year.

The package released Tuesday is larger than the $1 billion proposals the House and Senate have worked on the last couple weeks. She said neither is enough to protect education and other vital services.

The proposal would raise the sales tax most consumers pay from 6.75 percent to 7.75 percent for one year and place an emergency surcharge on the highest wage earners for two years. But permanent sales and income tax rates ultimately would be lowered and services subject to the sales tax expanded.

Perdue’s plan also would raise cigarette taxes by 50 cents per pack and increase alcohol taxes.

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