NY state raises taxes on rich, gives middle-class cuts

Reuters News
|
Posted: Dec 06, 2011 2:33 PM
NY state raises taxes on rich, gives middle-class cuts

NEW YORK - (Reuters) - New York's millionaires will pay higher taxes while 4.4 million middle-class and upper-income New Yorkers will get tax cuts, under a reform plan the governor and legislature unveiled on Tuesday.

The new top income tax rate for those who earn more than $2 million will rise to 8.82 percent. Without the agreement, this rate would have fallen to 6.85 percent from the current top rate of 8.97 percent because a surcharge expires this year.

The pact, which still must be approved by both houses of the legislature, cuts the current rate for those who earn $40,000 to $150,000 a year to 6.45 percent from 6.85 percent.

(Reporting by Joan Gralla)