December 15, 2008 / 11:06 AM / in 9 years

New York Governor to propose $4 billion tax package - NYT

Dec 15 (Reuters) - New York Governor David Paterson’s plan to close a $15 billion state deficit will include a $4 billion package of taxes and fees on a number of items, the New York Times said, citing unnamed sources with knowledge of the plan.

The paper reported that taxes will be imposed on items ranging from drinks made by Coca-Cola Co (KO.N) and PepsiCo Inc PEP.N to luxury items like fur coats and boats.

The budget, to be introduced on Tuesday, relies heavily on cuts of about $9 billion, mostly from state aid to education and Medicaid, the paper said, adding that it is sure to touch off months of protests and battles with lawmakers.

The paper cited Paterson at a Sunday night-appearance in Manhattan as saying it was “just prohibitive and painful” to have to make some of the decisions.

Paterson has left out any broad-based tax increases on people with higher income and proposed to increase welfare grants for the first time in 18 years, though more money would not be made available until the beginning of 2010, according to the paper.

    Sources who provided details about the plan did so on condition of anonymity because the plan has yet to be made public, the paper said.

    The governor’s office could not be immediately reached for comment.

    New York’s budget has been battered by the crisis on Wall Street, which pays the state about a fifth of its tax dollars. (Reporting by Eric Yep in Bangalore)

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