NY budget will likely hike taxes on state’s top earners to highest in the country

Legislators and Gov. Andrew Cuomo over the weekend ironed out the final terms of the Empire State's mammoth $200 billion spending proposal.

Legislators and Gov. Andrew Cuomo over the weekend ironed out the final terms of the Empire State’s mammoth $200 billion spending proposal.AP

New York lawmakers are closing in on a state budget deal that will likely increase taxes on top earners and big businesses by billions of dollars — a move which would make wealthy New Yorkers fork over the highest taxes in the country, sources told The Post.

Legislators and Gov. Andrew Cuomo over the weekend ironed out the final terms of the Empire State’s mammoth $200 billion spending proposal — including a so-called “millionaire’s tax” — but broke on Sunday for the Easter holiday.

They were expected to reconvene in Albany on Monday — in person or remotely — to wrap up talks and possibly vote on the budget, which is already past due.

Sources said the agreement is expected to include tax hikes and additional revenues totaling roughly $5 billion.

Democratic leaders of the state Assembly and Senate reportedly briefed legislators on the tax plan on Saturday.

The proposal would make New York City’s wealthiest pay the highest combined state and income tax in the country, the Wall Street Journal reported Sunday.

Big Apple millionaires would face a combined local tax rate of between 13.5 percent and 14.8 percent, the report said. The Golden State currently holds the title for highest top income-tax rate in the nation, 13.3 percent income over $1 million.

Under the plan, single filers reporting more than $1 million of income and joint filers reporting more than $2 million would see their income-tax rate spike from 8.82 percent to 9.65 percent, according to the Journal.

It would also involve creating two new tax brackets: one in which income over $5 million would be taxed at 10.3 percent and the other where income over $25 million would be taxed at 10.9 percent.

The state’s corporate franchise tax would also rise to 7.25 percent from 6.5 percent through 2023, the report said.

The additional tax revenue would be used to up spending for schools, provide funds for undocumented workers and for small businesses and tenants who are behind on their rent, the Journal reported.

Tax hikes have been the subject of intense negotiations in Albany.

The Senate and Assembly proposed roughly $7 billion in revenue raisers earlier this month, while the Cuomo administration argued the state needed closer to $2.5 billion to fund recovery efforts.

Fiscal watchdogs, Democrats representing moderate areas in suburban and upstate districts and even Sen. Chuck Schumer argued that taxes didn’t need to be raised because of the billions in federal stimulus money New York received over the last year.

The nonpartisan Citizens Budget Commission was among those arguing that New York doesn’t need to hike taxes to plug holes.

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