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ALBANY (CBS) ― You may want to think twice next year before downloading a song, going to the movies, or even kicking back with a beer. New Yorkers are about to pay more for just about everything under the sun with Gov. David Paterson's proposed $121 billion budget.

Paterson knew his bad news budget wouldn't please too many people. Why else would he begin his presentation with a reference to the Iraqi journalist who threw his shoes at President Bush?

"At the end of this budget presentation, if that's the most severe punishment I get, I'll sign up for it now," he said.

 Highlights Of Paterson's Budget Proposal

With proposals to raise $4 billion through a whopping 88 new taxes and fees, New Yorkers won't be able to afford to throw shoes at the governor because they probably won't be able to afford new ones. Clothing and shoe purchases under $110 will now be taxed, along with just about everything else you do.

 The Complete 2009-2010 Executive Budget

Download a song or album on your i-Pod and you'll pay new sales taxes.

Also slated for new sales taxes are movies, sporting events, taxis, limousines, cable television, satellite radio, cigars, beer, wine, and luxury goods like cars, boats, jewelry and furs.

Sugared soft drinks will be taxed at the rate of 18 percent.

"I feel like I just got out of the dentist office and had a root canal with all the pain we suffered," said Assemblyman Rubin Diaz Jr. (D-Bronx).

But that's not all, the governor wants to raise the cost of a driver's license from $50 to $62.50 and car registrations from $44 to $55. He also wants to re-issue license plates so drivers have to shell out another $25.

"He taxes everything from hair cuts to beauticians to soda to vehicles. You name it, he taxes it," said Sen. Martin Golden (R-Brooklyn). "The middle class is stuck paying the bills."

Some say a millionaires tax or income tax surcharge is preferable to the 88 new taxes.

"I think that there's no question there are many ways to do it," said Assemblyman Michael Gianaris (D-Queens). 

New York City got hit with a $650 million cut, nearly half of it in school aid, which did not please Mayor Michael Bloomberg.

Bloomberg said that because the city has a fiscal year different from the state's, it will get hit twice by reduced revenue sharing, losing $654 million from the municipal aid cut for its 2010 budget.

"I respect the governor immensely for standing up. That's the executive's job," Bloomberg said. "I am concerned that the state does not try to balance its budget on the backs of the city by disproportionately cutting city aid. We will do our share. We have roughly 40 percent of the population of the state. We pay roughly 50 percent of the state taxes and we can't let the state cut us more proportionately than any place else."

Bloomberg said Paterson's proposal has some things city officials were pleased to see, including more red light cameras, which should improve safety and save lives while generating revenue. He also cited a revised pension plan for future public employees. "Our pension system is one of those areas where spending has grown to an unaffordable rate and we simply have to find a way to rein it in," he said.

Meanwhile, Paterson's proposed statewide school aid cut would mean a loss of about $260 million to New York City schools, a little more than 3 percent of its state aid.

The governor also proposed decreasing credits in New York City's School Tax Relief program for homeowners by $125 for married or surviving spouses and $62.50 for others, for an estimated $122 million savings in 2009-10. Paterson would permanently shift the December payments for the city's STAR to June, saving another $20 million next year.

Paterson said he wants to get the budget done on March 1.

For more highlights of his proposed budget, click here.

 

(© 2009 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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