Federal income tax increases proposed by Democratic presidential candidate Barack Obama could indirectly blow a nearly $1 billion hole in New York State’s treasury over the next two years, according to a new report released last week by the Empire Center for New York State Policy, a project of the Manhattan Institute.

The report, entitled “High-Stakes Taxing: New York’s Prospects Under the Next President’s Tax Agenda,” estimates the impact on New Yorkers and the New York tax base of individual income tax proposals offered by Obama and his Republican opponent, John McCain.