New York Gov. Andrew Cuomo proposed raising taxes on the wealthy to a combined level of 14.7%, which would be the highest state-and-local tax rate in the nation.
The tax increase would raise $1.5 billion for the state, Cuomo said Tuesday in an address unveiling his 2022 budget proposal.
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The move would be part of a three-pronged approach — raising revenue, cutting expenses and borrowing — to cover the state's historic budget shortfall due to Covid-19, Cuomo said.
"New York cannot manage a $15 billion deficit," according to Cuomo, who said the state's largest prior deficit was $10 billion. "It's beyond what we can do."
The state would raise the top tax rate to 10.86%, up from 8.82%, Cuomo said. That would yield a top rate of 14.7% for the wealthiest New York City residents in combined taxes.
"[It] would be the highest income tax in the nation," Cuomo said.
This is a developing story. Please check back for updates.