Tough times have hit state governments, and as a result New York's Gov. Paterson plans to put his state's budget on a diet by cutting funding of education and health care. But he's also hoping lean measures can raise money [1] — the governor wants to tax non-diet soda, that he claims will bring in $404 million for the state.

Other revenue-raising ideas include: requiring new license plates, reinstating sales tax on clothing purchases, and requiring Indian retailers to collect taxes on sales to non-Indians. Paterson has to get creative if he wants to reduce the $12.5 billion state budget deficit.

If New York is going to tax soda, should it just go all the way and tax regular and diet?

Source [2]