Mr. Graham, thank you for taking the time for this interview. Our readers are very interested in you and your efforts to repeal the gas tax.

The North Carolina Conservative receives many questions each week about you and your organization, North Carolina Conservatives United.

Please tell us a bit about yourself, your background.

Graham: I am an attorney and businessman (Wallace and Graham-Partner, Cast Scientific Incorporated-President, Rowan Holdings LLC-Owner, Salisbury Re:Insurance Company Ltd.-Owner, Salisbury Underwriting Services LLC-Chairman, Community Bank of Rowan, Inc.-Founding Director). I grew up in Dunn, North Carolina. Dad was a chemist at a textile mill and Mom was a home health nurse. I attended Dunn High School, St. Joseph's College in Ireland, Catawba College, Antioch University, School of Law and Wake Forest University, School of Law

Tell us about North Carolina Conservatives United.

Graham: Our goal is to educate people on conservative issues. We are particularly concerned about the tax and spend direction of state government. The North Carolina economy is basically spinning its wheels or going into reverse. We've lost fifteen thousand private sector jobs since Mike Easley became Governor, while nationally millions and millions of new jobs have been created. The Governor and the Legislature have raised taxes $5.8 billion and increased per capita spending 28% in the last four years. They're pricing our state's economy out of the job market. If voters get clear information about conservative issues, unfiltered by the liberal press, it will be easier to elect good candidates.

What motivated you to begin the Stop the Gas Hike Tax effort?

Graham: The price of gas is hurting so many people. North Carolina's tax burden and tax policy stands in stark contrast with neighboring states and the rest of the country where taxes are lower and less burdensome on
families and small businesses. It's an obvious place to start bringing conservative common sense to government.

What problems does NC's high gas tax present to our economy and our
residents?

Graham: Two thirds of small businesses say high gas prices are having a
drastic impact on their profits and they support a lower gas tax. When
government taxes a necessity at such a high rate, you depress
consumers. A high gas tax could be the difference between vacationing at Wrightsville Beach or staying home. There is a drag on growth and high gas taxes are especially harmful in rural areas that are already hurting.


How does NC's gas tax compare with our neighboring states?

Graham: We are thirty cents a gallon. South Carolina is 16 cents, Tennessee is 20 cents, Virginia is 17 cents and Georgia is 8 cents. In fact, Georgia
suspended their tax right after the hurricanes drove up the price of gas.

What should NC's gas tax be, and what should revenue from the gas tax be used for?

Graham: We are advocating a repeal of the 10% tax increase that began January 1. After that, we can go further. All the money should definitely go to our roads.

How are the proceeds from NC's gas tax used now?

Graham: We have two sources of revenue for highways and both are funded with gas taxes. There is a Highway Trust Fund and a separate Highway Fund. Right now, $400 million a year is taken out of the Highway Trust Fund and spent for non-highway projects including pork barrel spending. That's twice what the state will spend widening I-85 and I-77 this year. In the last 16 years, 3.7 billion has been taken out of the Highway Trust Fund for non-highway projects. That will build two outer loops around Charlotte. In addition, $200 million a year is taken out of the Highway Fund to pay for non-highway items like environment programs, the Highway Patrol, which is really just the state police, and driver education. So there is a lot of gas tax money going for things besides roads.

Are there any steps NC can take to lower overall gas taxes?

Graham: In just the first five months of the fiscal year, the state collected $100 million in extra tax revenue that was not budgeted for. The politicians want to come back to Raleigh in May to have a spending party. We are saying use that extra money to repeal the gas tax increase without taking away a nickel from our roads.

What is the future of North Carolina Conservatives United? Would the group disband if the gas tax is reformed? Are there long-term goals?

Graham: We plan to push other Conservative issues like eliminating pork barrel spending, lowering the tax burden on all our citizens, job growth, education, health care finance and reform, immigration, reducing the size and cost of state government and protecting innocent life.

You have become a very popular figure in NC politics since you began this gas tax fight; what are your political plans, if any?

Graham: I've been around politics for a long time. I have worked on Senator Helms' staff and supported good candidates like George W. Bush, Elizabeth Dole, Richard Burr, as well as many of our Republican Members of Congress. I have for years supported state and local candidates. I will certainly continue to support good candidates and I will see what may happen in the future.

Many in Raleigh say you will/should be our next governor; how do you respond?

Graham: Running for Governor is a possibility I am considering. It is too early to make that determination. I will make a decision on that sometime early next year. For now we want to advance innovative ideas for the good of our party and the people of our state.

Again Mr. Graham, thank you for your time and your efforts on behalf of our state.