New tax proposal may make life in New York State a little more expensive

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ALBANY, N.Y. (AP) - A published report says Gov. David Paterson plans to increase taxes on insurance policies, create an "obesity tax" on non-diet sodas, revive the state sales tax on clothing, and potentially shift more health costs to individuals after
changing funding and taxing in the health care field.

Errol Cockfield, spokesman for Gov. David Paterson who is scheduled to release his budget proposal Tuesday to the Legislature, won't deny the tax proposals first reported in the Albany Times Union Sunday. He says details of the budget will be released Tuesday.

Cockfield has said Paterson has no plans to increase income taxes.

A $12.5 billion deficit is projected for the 2009-10 fiscal year that begins April 1.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

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