New York: Hold On To Your Wallets

While Eliot Spitzer will be gone in short order, that doesn't mean that your wallets are safe. David Paterson hinted that he's going to go along with the Assembly Democrats and hike personal income taxes on high income wage earners (that would be people with more than $1 million).

Although Paterson vowed to continue with Spitzer's policy not to raise taxes further, Paterson said the tax hike intends to target only those earning more than $1 million a year. The tax increase for big earners was an idea from the Democrat-led New York state assembly.

It is expected, though, to be resisted by Senate Majority Leader Joseph Bruno. "Senate Republicans will not be a party to such a massive new tax increase in this, or any other state budget," Bruno said. He warned that more taxes may drive New Yorkers out of their houses and the state.

Prior to his resignation, Spitzer suggested reducing healthcare expenditures, assistance to local school district and hiking other fees to bridge the $4.4 billion state budget shortfall.

With a huge budget hole to make up, hiking the personal income tax on millionaires isn't going to cut it. They're going to be increasing taxes and fees elsewhere. The question remains who will end up paying the most.