Budget plan has sales-tax extension

From today's Winston-Salem Journal:

N.C. House leaders rolled out a plan yesterday for at least $562 million in taxes they say they need to balance the state budget for 2005-07.

They also warned that more taxes - including a higher cigarette tax - could come later.

The tax plan was approved by a 19-11 vote along party lines in the House Finance Committee and is scheduled for debate on the House floor today.

It consists largely of extending for two years a half-cent sales tax that was adopted as a "temporary" tax in 2001 and is currently scheduled to expire July 1. The sales tax would raise $413 million in 2005-06 and $459 million in 2006-07, when it would be scheduled to expire again under the plan.

Unlike a proposal from the N.C. Senate, the House plan would also extend an upper-income tax bracket for individuals who make more than $120,000 a year and couples who make more than $200,000 a year.