Gov. Andrew M. Cuomo and legislative leaders announced on Tuesday that they had reached an agreement to overhaul New York State’s income tax, creating a higher-tax bracket for the highest-income residents and reducing the tax rate for millions of middle-class residents.
The leaders, seeking simultaneously to make the state’s income tax system more progressive and to increase tax collections during a down economy, announced their agreement as lawmakers began to arrive at the Capitol for an expected special session of the Legislature later this week.
The agreement was reached just weeks before a state tax surcharge on high-income earners was set to expire.
“This would be lowest tax rate for middle class families in 58 years,” Mr. Cuomo said in a statement. “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.”