Paterson: Washington Needs to Raise Taxes

Speaking at Columbia University today, former Governor David Paterson waded right into the federal budget debate.

"As a nation, we're going the wrong way," he said. The former governor said he understood "the political winds," but he said troubled European economies show how cutting spending can dramatically lead to deflationary spirals.

"We have a revenue crisis" Paterson said. "The road out of this is revenue generation."

The former governor kept his tax comments focused on Washington. He mentioned the progressive tax surcharge added to the bill of New York taxpayers earning more than $200,000 during his administration -- but he didn't comment on its coming expiration at the end of year.

He called the on-time budget in Albany "a tremendous, tremendous achievement" because it closed a $10 billion deficit without adding new taxes or new borrowing.