Basnight eyes raising prices of some vices.

AuthorCline, Ned
PositionCapital

If you smoke or drink, it soon might cost more to feed your habit. But don't snuff that butt or recork the bottle just yet. If you're ready to vote on a state lottery, you might get your chance. But don't bet on it. If you think taxes are too high and are looking for much relief, well, you might as well sit back, light up and chill out with a tall, cold one.

The 2004 edition of the General Assembly is heading to Raleigh, and the only certainty is uncertainty. Such is life on Jones Street, where the honorables meet to debate and legislate two to 10 months each year, depending on the breezes fanning the political weather vane. This year's session, with an anticipated life span of several months, begins May 10. Top topics include taxes, new revenue, cutting costs, university administration, jobs, video poker and, last but not least, finding ways to get re-elected.

Marc Basnight, the Dare County Democrat who runs the Senate, is the most powerful man in the legislature, if not all of state government, a fellow so shrewd you'd never realize it. This session will test that description. Depending on your habits, the Senate president pro tempore's success might pick your pocket: He thinks it's time to increase consumption taxes on cigarettes, beer and wine. (But he's staying away from the hard stuff.) It's uncertain how many of his Senate colleagues agree, even less so that the House, evenly split between Democrats and Republicans, will concur.

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The 5-cents-a-pack tax on cigarettes is the nation's third-lowest, and it has been raised only twice in state history. Bumping it a nickel would generate an additional $35 million a year. One reason it's so low is that tobacco companies and their lobbyists have poured more than $2 million into state races in the last five years, according to Carrboro-based Democracy South, which tracks campaign money in North Carolina. The 5-cents-a-can tax on beer is the nation's fifth-highest, generating about $96 million a year. The levy on wine--11 cents a bottle, bringing in $22 million a year--is considerably lower than in most states.

"These are optional taxes that I believe will help build better economic growth," Basnight says. "It would generate needed revenue and not affect any businesses. I prefer taxing the things businesses don't care about. Businesses coming to this state never ask about a cigarette or beer tax. This is not something they compete against. Businesses care about schools and...

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