Bloomberg News

Cuomo Reaches Deal With Top New York Lawmakers on Tax Overhaul

December 06, 2011

Dec. 6 (Bloomberg) -- New York Governor Andrew Cuomo and legislative leaders reached an agreement to temporarily raise the tax rate on those who earn $300,000 or more as part of plan to generate about $2 billion in new revenue. Residents who earn less would get a tax cut.

The plan also includes an agreement to establish a fund that would combine $1 billion in public cash with money from private pensions and investors to fix and replace New York’s infrastructure. Cuomo released the plan in an e-mailed statement jointly sent by Senate Majority Leader Dean Skelos and Assembly Speaker Sheldon Silver.

Employers in the 12 counties surrounding New York City would also see a cut in the portion of their payroll taxes used to support the Metropolitan Transportation Authority.

The majority Assembly Democrats are scheduled to meet this afternoon to discuss the proposal, and Senate Republicans, who hold a one-vote edge, are to meet tomorrow.

“This job-creating economic plan defies the political gridlock that has paralyzed Washington and shows that we can make government work for the people of this state once again,” said Cuomo, a Democrat who celebrated his 54th birthday today.

The state faces a $350 million deficit in the current fiscal year and a projected $3.5 billion gap in the year that begins April 1. The rates proposed today would expire in December 2014.

--With assistance from Jeran Wittenstein in San Francisco. Editors: Mark Schoifet, Stephen Merelman

To contact the reporter on this story: Freeman Klopott in Albany at fklopott@bloomberg.net

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net


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