Tax filers beware: Gov. Paterson’s 2010-11 budget proposal would add hundreds of tax auditors in hopes of shaking every penny out of New Yorkers.
Paterson wants $17 million to hire 330 new tax auditors, computer experts and compliance officers – a move he says can generate $221 million in extra revenue from tax fudgers.
“We want to make sure that everyone is paying their fair share of tax liability under the law,” said Paterson budget spokesman Matt Anderson.
Cigarette smokers – already paying about $10 per pack – and soda slurpers also are in the firing line of Paterson’s $134 billion spending plan unveiled yesterday.
The governor wants to hike the state’s cigarette excise tax by $1 to a nation-high $3.75 per pack.
He again proposed a “fat tax” on sodas and other sugary drinks that could jack the price of a 2-liter bottle of soda by 68 cents.
Paterson argues the so-called “sin taxes” would benefit public health while staving off even deeper health care cuts.
To balance his plan, Paterson cuts $5.5 billion in spending and imposes $1 billion in taxes and fees, including:
– Trimming $1 billion in health and Medicaid costs while also tacking on $923 million in new health care payments.
– Capping the city personal income tax credit at $250,000, a move that he projects will generate $143 million.
– Cutting school aid across the board by $1.1 billion, or 5%, including a $469 million hit for New York City.
– Permitting the sale of wine in grocery stores, legalizing ultimate fighting, eliminating restrictions on the Quick Draw keno-like lottery game and extending the hours of video slot machines to boost revenues.
“The era of irresponsibility has got to stop,” Paterson said. “The age of accountability has arrived.”
Despite the reductions, Paterson’s proposal boosts state spending by a little less than 1% over this year’s budget.
Paterson’s office says the city would see nearly $750 million in overall budget cuts, though locals say it could be much higher.
Aside from school aid, the city would lose $301.7 million in local government support – a move the city says tops $650 million.
Mayor Bloomberg said that while the city is “willing to do its fair share to help Albany get out of its financial mess,” the cut in municipal aid “appears neither proportional nor fair.”
Assembly Speaker Sheldon Silver and Senate Democrats decried many of the cuts. And Senate GOP Minority Leader Dean Skelos questioned the need for tax hikes.
Fiscal watchdogs were split on Paterson’s proposal.
“If the past is any guide, the governor will be harshly and unfairly criticized for seeking to curb spending growth in many areas, when the real problem is that he continues to spend too much,” wrote E.J. McMahon, director of the Empire Center for Public Policy.