New sin taxes are being proposed for New York City, and would be aimed at soft drinks and cigarettes under a spending plan for 2010-11 unveiled by Gov. Paterson this morning that would also cut $1 billion in education funding and raise health care taxes, the New York Post reported.

"There are no more easy answers," Paterson said in a letter accompanying the budget. "Avoidance behavior is simply not acceptable. Federal stimulus funding is running dry. We have already increase taxes on high-income New Yorkers." He added, "further spending reductions are both necessary and inescapable."

Planned revenue-raisers include a $1 increase to the state's $2.75 per-pack cigarette surcharge and a newly revised "fat tax" on syrups and soft drinks.

The plan would raise $45 million by allowing "racino" video lottery parlors to run 24 hours a day and bring in another $2.1 million by lifting the ban on Ultimate Fighting bouts.

It would also lift restrictions on the keno-style Quickdraw and allow wine sales in grocery stores.