Updated 02/10/2009 03:00 PM
State Democrats Propose Tax On Wealthy
To view our videos, you need to
enable JavaScript. Learn how.
install Adobe Flash 9 or above. Install now.
Then come back here and refresh the page.
Looking for ways to reduce the state's big deficit, Albany Democrats proposed a controversial tax increase on the wealthiest New Yorkers.
The bill would raise income taxes on all households earning more than $250,000 a year.
State tax for high-income earners is almost seven percent now.
The proposal pushes that rate up by 1.4 percentage points for people earning between $250,000 and $500,000 a year. There's a higher rate for those making over $500,000.
The highest rate applies to incomes over a million dollars. With a 3.5 percent increase, those million-dollar taxpayers will pay a total state tax of 10.3 percent.
Critics argue that higher taxes will stifle business and drive people out of the state.
However, advocates of the plan say even small tax increases could bring in up to $6 billion a year and help preserve necessary services.