Tax Protesters Gather at Legislature

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 protester 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.

They also say the state’s credit rating, which allows government to borrow money cheaply, is at stake.

The tax package has cleared a House committee, but Black has not decided whether he will allow a vote of the full House on the proposal. Instead, he could simply put it before House and Senate budget negotiators and allow them to roll it into the $14 billion state spending plan.

He said Tuesday that there will be no vote on the package this week.

At an earlier budget briefing, Gov. Mike Easley said he intended to protect the state’s bond rating.

“I won’t sign a budget that puts our bond rating in jeopardy,” Easley said.

But those attending the anti-tax rally said lawmakers can make additional spending cuts that won’t hurt average working people.

“I just believe that if we don’t let Mr. Easley and the legislators hear folks, then they’ll just do what they want – take my money,” said Sonja Conger of Winston-Salem.

Like many of those at the rally, Conger waved a protest sign as speakers railed against a tax hike. Her sign read, “Mr. Black, Off My Back. No New Taxes. “

A man dressed as Santa Claus walked through the crowd carrying a sign reading, “Santa Claus Should be Fat, Not Government.”

“When the politicians say they cut spending to the bone, if I were you, I’d ask to see the bone,” John Hood of the Locke Foundation told the crowd.

Despite their harsh words for him, Black praised the protesters for their involvement. But he said he considered adjourning the House session when the tea bags were thrown from the gallery.

“I can appreciate people at least paying attention to what is going on,” he said.

The tea bag throwing prompted Rep. George Holmes, R-Yadkin, to go up to the gallery, where he got into a heated argument with one of the protesters.

Holmes told the man that throwing objects from the gallery was only hurting the protesters’ cause. “I’m on your side,” Holmes said.

But the man accused the Republican of not taking the protesters’ concerns seriously.