Updated 12/15/2008 01:26 PM
Paterson Considers “Obesity Tax” To Close Budget Gap
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In an effort to find new sources of revenue to close the state's $15 billion deficit, Governor David Paterson's new budget, set to be proposed tomorrow, will include new taxes and fees – covering everything from gasoline and clothing to sugary soda.
NY1 will have live coverage of the governor's state spending plan beginning at 11 a.m. tomorrow.
The so-called "obesity tax" of 15 percent on non-diet sodas is expected to be one of the most controversial items in Paterson's state budget proposal.
New Yorkers who spoke to NY1 this morning found the proposal difficult to swallow, but many conceded that the money needs to come from somewhere.
"I'm not happy about it, but it has to be done," said one New Yorker. "It's something we have to live with."
"I feel it's right, but it's not right," said another. "You're not being fair to the people. It should be something really thought out. Right now there are a lot of people living here that should be taxed that are not being taxed."
According to NY1's unscientific poll this morning, 45 percent of the station's viewers drink regular soda, compared to 24 percent who drink diet, and 31 percent who say they drink neither.
The budget also calls for cuts in Medicaid and education spending, a tuition hike at State University of New York and City University of New York schools, and higher Department of Motor Vehicle fees.
Paterson is not expected to call for an income tax hike. The state Legislature has expressed support for the tax.
Today, the governor signed legislation that will make it easier to collect fees and taxes on cigarettes that are sold to non-Native Americans on Native American reservations.
"What we're going to try and do today is alleviate an issue that has existed for a very long time," said Paterson. "We won't be able to alleviate it just today. But we're taking steps in what will be a process to reach that goal."
The governor's office also announced yesterday an expansion of the state's social services network, including a 30 percent increase in welfare payments over three years beginning January 10th. It will be the first time the stipend has been increased in 18 years.