NY gov. mulls tax hike on hedge funds, luxury goods

NEW YORK Dec 16 (Reuters) - New York should expand its personal income tax for non-residents to include income from hedge funds and management fees, and limit itemized deductions for millionaires, according to the governor's new budget plan.

New York Gov. David Paterson has repeatedly blocked Democrats in the state Assembly from wringing higher income taxes out of millionaires, saying this would just drive them out of state.

The governor's new $121 billion budget also targets the well-to-do in other ways, including levying an extra 5 percent sales tax on luxury goods, from yachts and jets to jewels and furs.