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.

The new spending plan raises taxes on wealthy New Yorkers in an effort to close the state's massive budget gap.

Sources tell NY1 that a new tax rate will be imposed on people filing as single head-of-household taxpayers who make $250,000 a year or more.

That rate jumps one percentage point to eight percent. Those making half a million or more will see their rates balloon to nearly nine percent.

The tax hikes would sunset after three years, assuming the economy recovers.

Governor David Paterson has long argued new income taxes would be a last resort.

Lawmakers also agreed to keep education spending flat, despite a court settlement requiring a boost in aid. They're also slashing millions in funds from health care.

The bottle bill will be expanded to include new nickel deposits on bottled water, though small stores will get an exemption. Grocery stores, however, still will not be able to sell wine.

Lawmakers also say they're closing in on a plan to rescue the cash-strapped MTA, which approved its so-called doomsday budget last week. They're trying to reach a consensus behind closed doors and expect to reach an agreement by Wednesday.

Without a bailout from Albany, fare hikes and service cuts will take effect May 31st.