The House Finance Committee adopted a $784 million tax package designed to mitigate the deep budget cuts in the House's budget proposal.
House members shaved $154 million from the proposed $940 million tax plan by removing "sin" taxes on beer, wine and cigarettes.
Republicans tried unsuccessfully to weaken the tax package. Democrats were the ones who successfully proposed removing the “sin” taxes from the roster.
"We got folks who are barely scrimping by as it is. Beer may be their only entertainment," said Rep. Bill Faison, an Orange County Democrat who proposed removing beer from the tax package.
Committee members shot down a series of proposed amendments, arguing that the new taxes were needed to avoid painful cuts in state spending. Opponents to the taxes argued they would hurt business and worsen the recession.
How the tax proposals finished after the jump.
—————
* New income tax brackets for the state's wealthiest residents. The current rate for incomes greater than $100,000 is 7.75 percent. The new brackets would be 8.25 percent for incomes $200,000 to $500,000 and 8.5 percent for incomes greater than $500,000. Tax would raise $256.7 million. Survived.
* Expand the franchise tax to limited liability companies. $59 million. Survived.
* Require corporations with operations in multiple states to file tax returns showing their activities in all states. Officials say the change would make it more difficult for corporations to hide their North Carolina profits. $176.2 million. Survived.
* Throwback rule: Sales of property by a corporation to the federal government or a purchaser in a state that cannot tax the sale would be included in the corporation's corporate tax calculation. $5.9 million. Survived.
* Change Bank Interest Deduction: Removes a rule that allows banks to deduct interest expenses incurred in producing tax-exempt interest income. $2.6 million Survived.
* New categories of sales tax: Sales tax would be paid on warranties, installations and repairs. The addition includes car repairs, non-Postal Service deliveries, movie tickets, digital downloads and other items. $238.1 million. Survived.
* Increase sales tax rate by 1/4 cent. $195 million. Survived.
* 25-cent per pack tax on cigarettes and similar tax on other tobacco products: $122.6 million. Killed.
* Tax increase on beer. $25.5 million. Killed.




Re: Finance passes $784m tax package
This fall and next year if you like these local and state TAX INCREASES for a bloated government(s), please vote Democratic. If you support a lean and well run government(s), then vote Republican.