| Posted by NewsHawk , Aug 01,2001,19:25 | MetroBlab |
RALEIGH, N.C. (AP) -- Determined to stop a tax hike, protesters
gathered outside the Legislature on Tuesday to criticize a
Democratic proposal to increase sales taxes and create a new
upper income tax bracket.
About 700 people showed up at the "Tar Heel Tea Party," some
wearing tea bags attached to their lapel buttons. The event was
organized by talk radio hosts in several cities across the state
along with the conservative groups that included the John Locke
Foundation and Citizens for a Sound Economy.
Inside the Legislature, one protesters was removed from the
House gallery after he stood and attempted to address House
Speaker Jim Black, D-Mecklenburg. A handful of protesters in the
gallery then began chanting, "No new taxes."
Later, a woman threw tea bags from the gallery onto the House
floor.
Dick Carter, the protester who had attempted to address Black,
said he wanted to use his visit to Raleigh to make his views
known.
"They will not listen to us," the Wilmington man said. "I think they
must have blinders on."
The tax package proposed by House Democratic leaders would
net the state $440 million in the first year, but would represent an
overall increase in state and local taxes of roughly $600 million
by the time it is fully implemented in the second year.
The proposed tax hikes include a 1 percent income tax increase
on couples making $200,000 or more, and a provision giving
counties the ability to raise the sales tax by a half cent while
pulling back for the state $330 million in local reimbursements.
The plan also calls for imposing a 6 percent sales tax on liquor
sold in ABC stores and eliminating a sales tax cap on cars that
sell for $50,000 or more.
It would also reduce taxes for some, increasing the standard
deduction for married couples by $1,000 and raising the child
credit from $60 to $100.
Democratic leaders say the tax increase is necessary to avoid a
round of painful budget cutting in a weakening economy that has
resulted in slowing tax collections.