The Taxation Committee was convening Wednesday to consider revenue-raising proposals.

The state faces a projected budget shortfall of $406 million for the fiscal year beginning July 1 after lawmakers cut income taxes in 2012 and 2013 to stimulate the economy.

The plan before the House committee would raise the sales tax to 6.5 percent from 6.15 percent but drop the rate on food to 5.9 percent. It also would increase cigarette and gasoline taxes.

It also would raise $23 million during the next fiscal year by taxing some income earned by business owners that was exempted in 2012.