Taxes '09: Where it's going to hurt

READY OR NOT, state taxes are probably going up.

On Tuesday, Gov. Rendell proposed raising the state income tax by half a percentage point.

It's the governor's latest move in the ongoing saga of the state budget, which is projected to have a $3.2 billion deficit for the coming year. Republicans have vowed to fight the increase, but the sheer size of the budget gap means that some hikes will be necessary.

More than the income tax could rise - so here is your guide to where the pain could come from and how much it might hurt. (Lawmakers are considering increasing taxes on natural-gas extractors and tobacco products and slowing planned tax cuts for businesses.)

With the help of our friends at the Commonwealth Foundation, Pennsylvania Budget and Policy Center, and the Pennsylvania Economy League, "It's Our Money" took stock of the various tax-hike proposals being considered in Harrisburg. *