Thread: NY Gov. Paterson: Millionaire Tax Last Resort

NY Gov. Paterson: Millionaire Tax Last Resort

MoneyNews
Thursday, April 10, 2008

NEW YORK -- New York should consider increasing its income tax on millionaires only as a last resort after making more spending cuts and increasing efficiencies, Gov. David Paterson said on Wednesday.
The Democrat's comment came as announced he had agreed on a new $122 billion budget with state lawmakers.

The budget, approved past the March 31 deadline, compares with last year's $116 billion accord. The state spent $2 billion less than expected.

New York gets 20 percent of its tax revenues from Wall Street, and the financial sector's losses related to subprime mortgage investments has put the state's finances at risk.

"I am very, very fearful of our national economy," Paterson told reporters in Albany. "I think we set a sound budget but I don't think we left enough room," he said, adding he would be pleased if the legislature agreed on more cost savings.

The Democratic-led Assembly wanted the 70,000 workers who earn more than $1 million a year to pay higher income taxes. But the Republican-controlled Senate feared this would prove a job killer, and Paterson says state taxes now are so high that they are driving people out.

Instead, a package of tax increases was enacted. Cigarette taxes will rise by $1.25 per pack from $3.00 now. A loophole for real estate trusts was closed, and a new capital-based tax was enacted, both of which sunset after three years.

http://moneynews.newsmax.com/money/arch ... .cfm?s=mnn

No moron, taxing the rich should be the FIRST resort!