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Gov. Paterson Comments on Withholding Tax Refunds

By Ryan Morden

Oswego, NY – Governor David Paterson is blaming the state legislature for the possibility of withholding state income tax refunds.

Paterson says the budget gap the legislature left at the end of last year might cause the state to come up short. He adds that withholding the income tax refunds could help prevent the state from going bankrupt if a new budget isn't passed by the April 1st due date.

The governor says he understands that people are frustrated with the idea, but the ramifications of the state going bankrupt would be far worse for New Yorkers than a delay in their state income tax refunds.

"We can only do this to stop the state from going bankrupt, but there are procedures we will have to take if the legislature doesn't act, and close this deficit with real and recurring deficit reductions, not made-up, phony revenue enhancers that don't really exist," says Paterson.

Democratic leadership in the state Senate and Assembly haven't responded to Pateron's latest criticisms or his proposal to withhold income tax refunds.

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