Luxury tax, obesity tax among 88 being proposed by Paterson

Besides major cuts in spending, Gov. Paterson is also proposing additional taxes and fees in the new budget for the 2009-2010 fiscal year to address the year's $13.7 billion deficit.

Among them is a luxury tax, which would be imposed on those who buy luxury goods costing over $20,000 -- like yachts, jets, jewelry and furs.

That's just one of 88 tax increase proposals aimed to raise $181 million in revenue for the state. Among others: reinstating the sales tax on clothing and footwear under $110, but replacing it with two one-week exemption periods on clothing and footwear priced under $500. Localities would have the option to join the state in offering the exemption. 

An "obesity tax" on non-diet sodas and other fruit drinks containing less than 70 percent real fruit juice is also being proposed as a way to curb sugar intake in young people while helping drive money into state coffers.

The cigar tax would be increased by 17 cents, to help raise a total of $10 million.

Some other tax increases, culled by PolitickerNY.com and Daily Politics, include those on movie tickets, sporting events; taxis and limos; cable or satellite TV and radio; malt liquors like Olde English, Zima and Smirnoff Ice, as well as for beer and wine (tax on wine will more than double to 51 cents a gallon, and tax on beer will be upped to 24 cents per gallon); digital audio and text files (like iTunes);

So-called "revenue action" fees include: increasing the fee for registering a car from $44 to $55, driver's license renewal from $50 to $62.50 and food licensing fees from $200 to $400 for processors and warehouses. The actions are expected to raise $2.2 billion.

Personal income tax for non-residents would include income from hedge funds and management fees, and limit itemized deductions for millionaires as well.

Paterson has refused to propose a so-called millionaire's tax, which would tax higher-income residents, on the grounds it would drive the wealthiest out of the state. 

What do you think of the new taxes and fees being proposed? Are they mostly fair? Combined with spending cuts, do you think they will be effective in helping the state rid of the massive deficit?