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 deal came together just 25 days before the expiration of the state’s so-called millionaires’ tax — actually a surcharge on all individuals earning over $200,000 a year. The proposed tax overhaul would result in most residents’ being taxed next year at a lower rate than this year.

The long-term impact on the wealthy was described by some as a cut and others as an increase: beginning next year, the highest-income earners will be taxed at a lower rate than at present, but at a higher rate than had been expected with the expiration of the surcharge.

The changes, which the Legislature could vote on as early as Wednesday, would net $1.9 billion in annual revenue; the expiring surcharge had been generating about $4 billion a year.

It was a piece of political craftsmanship that allowed both Democrats and Republicans to declare victory…..

Read article here