Politics & Government

N. Carolina Gov. Perdue blocks plan to boost state taxes

raleigh, N.C. — Gov. Beverly Perdue succeeded Thursday in blocking a tax package deal struck between the House and Senate just 24 hours earlier.

Senate leaders said they would start over on what taxes to raise and how much because of objections Perdue raised to a proposed 2 percent surcharge on all income tax brackets. Perdue also is insisting on no reduction in per pupil spending for public schools, said Sen. David Hoyle, a Gaston County Democrat and co-chair of the Senate Finance Committee.

"What we're going to do is regroup and replan," Hoyle said.

House leaders generated further confusion when they insisted that the tax deal was still viable. "It's still on the table," said Rep. Mickey Michaux, a Durham Democrat and senior chairman of the House Appropriations Committee.

House leaders also said they would be writing their own version of the spending side of the budget. Legislative leaders, already three weeks late in crafting a budget, reached a tax deal yesterday that included the income tax surcharge, a 1-cent hike in the sales tax and a group of alcohol and tobacco tax increases to raise $982 million.

Read the full story at newsobserver.com