The NC House Finance Committee will consider a tax package Tuesday morning. It would raise about $940 million to help bridge what is somewhere in the neighborhood of a $4 billion budget gap.
Among the major proposals outlined by budget writers Monday night:
- The sales tax would rise one-quarter of a percent. That would make it 7 percent in most places.
- Sales tax would be applied to more items, including warranties, installation of home appliances and repairs.
- Two new income tax brackets would be created. Currently, anyone making more than $100,000 is taxed at 7.75 percent. The proposal would tax those who earn between $200,000 and $500,000 at 8.25 percent. Those making more than $500,000 would be taxed at 8.5 percent.
- Cigarette taxes would be raised 25-cents per pack to a total of 60-cents of state taxes per pack.
- Alcohol taxes and fees on dozens of government licenses and services would rise.
Update: Click here to listen to Rep. Paul Luebke explain the tax proposal, and what it might buy, to reporters.