Cuomo’s Tax Increase on Wealthy New Yorkers Wins Approval From Lawmakers

By Freeman Klopott - Dec 7, 2011 10:07 PM PT .

New York lawmakers approved Governor Andrew Cuomo’s plan to overhaul the state tax code by raising rates on the wealthiest residents and cutting them for millions of married couples earning less than $300,000 a year.

The measure passed the Assembly early today after winning Senate approval yesterday. The deal was announced Dec. 6 in a joint statement by Cuomo, Assembly Speaker Sheldon Silver, a Democrat, and Senate Majority Leader Dean Skelos, a Republican.

Cuomo, 54, had vowed not to raise levies, and his opposition to extending a so-called millionaire’s tax -- actually a surcharge on income above $200,000 for individual filers -- drew criticism from fellow Democrats, unions and the Occupy Wall Street protest movement. The governor changed his stance after a midyear report showed a budget deficit of $350 million this year and a $3.5 billion gap in the fiscal year beginning April 1.

“This is a different economic reality than anyone could have anticipated,â€