The economy may be bad but North Carolina voters are willing to accept some tax increases- at least the ones on cigarettes and alcohol that Bev Perdue has proposed.

BY Laura Barron
NBC17

In an effort to generate money Governor Bev Perdue is recommending increasing “sin taxes”

The state cigarette tax would jump a dollar to a $1.35 making it slightly above the national average. Perdue also wants a 5 percent surcharge on alcohol would take place at the final point of sale, meaning an extra 5 percent on every drink you buy. Those two taxes, along with other tobacco taxes, would generate more than $500 million for the state in the 2009-10 budget year.

Of all days, Dylan Moody wonder why Perdue chose this particular day to make her announcement.

“It’s St. Patty’s! What kind of stuff is that? That’s just not right Bev I voted for you!” Moody said.

A 5 percent surcharge on alcohol isn’t so lucky according him, and other drinkers at Hibernian in Raleigh.

“It’s not even the money, it’s just the point of it,” Moody said.

Kate Giust said the alcohol surcharge isn’t a problem to her, and for younger smokers like herself, the dollar increase on cigarettes might help her extinguish the habit like Perdue is hoping.

“Maybe that would encourage me even more to quit smoking,” Giust said.

ut some, like convenience store owner Raj Kumar, are left wondering why target tobacco and alcohol?

“They should increase the price for the luxurious items like cars, and any fancy things,” Kumar said.

Kumar said the economy has already hit his business hard.

“It’s already cut down the sale of cigarette 15 to 20 percent,” Kumar said.

A spokesman for the parent company of tobacco giant Phillip Morris USA, Bill Phelps, said the proposed tax combined with a federal 62 cent a pack increase in April will hurt small businesses and the state.

“It creates an incentive for people to look for other places to buy their cigarettes to avoid paying that tax, and that can in many cases mean going across state lines,” Phelps said.

Smoker Paulette Bolling said she’ll still buy her cigarettes, but doesn’t think it will help the state budget.

“There is so much that needs to be done, that a dollar on cigarettes is just a drop in the bucket,” Bolling said.