Senate leader Marc Basnight proposed raising taxes on alcohol and cigarettes.
At a press conference Thursday, the Manteo Democrat made the first public mention of possible tax increases to help prop up the state's shrinking revenue.
"I do think it should occur," he said.
Gov. Beverly Perdue and other Democratic leaders in the legislature did not dismiss Basnight's proposal. Republicans, who are in the minority in the House and Senate, were quick to criticize the idea.
Basnight offered no specific figures, but each 1-cent increase in the 35-cents-per-pack cigarette tax raises an additional $5.35 million. Each 1-cent increase in the 53-cents-per-gallon beer tax would generate another $1.9 million.
Even increases of a quarter of 50 cents would barely fill the state's $2 billion budget hole. (N&O)




Progressive States Network Recommendations
Introduction: Tax and Budget Reform
Make Tax Systems More Progressive
Promote Fair Income and Estate Taxes
Reform Property Taxes
Broaden Base of Sales Tax To Include Services
Make Corporations Pay Their Fair Share
Better Enforcement of Tax Law
Stop Rightwing Tax Campaigns
Fix Failed Tax and Development Subsidies
Review and Sunset Tax Expenditures
Disclose Economic Subsidies
Require Job Quality Standards and Other Reforms for Subsidy Recipients
Stop Tax Subsidy Bidding Wars
Reform Government Contracting and Restrict Privatization
Measure and Disclose the Costs of Public Contracts
Strengthen Contract Accountability
Enforce Wage Standards on Contractors
Restrict Asset Privatization
Stop Pay to Play on Government Contracting