Under the new deal announced on Tuesday, middle-class residents making between $40,000 to $300,000 would receive income tax cuts that would result in savings ranging from $300 to $400 a year.
The timing of the announcement came just two short weeks before a state tax surcharge on the wealthy was set to expire.
Cuomo stated the need for a change in order to bolster the worsening economy and pointed to the current $3.5 billion state deficit. During Tuesday's press conference, the governor explained the new Fair Tax Plan:
[The new plan]...a tax reform to make the code more equitable and to stimulate the economy. I propose a tax cut aimed at the middle class New Yorkers that I believe will help stimulate the economy by putting much needed money back in the hands of millions of people across this state...Under this plan, middle class families will pay the lowest tax rate since before I was born and that was a long, long time ago. It will be the lowest tax rate in 58 years.
Assembly speaker and Manhattan Democrat Sheldon Silver praised the leaders and their steps to "restore fairness and equity to our tax system."
The New York Times notes that in addition to the tax cuts, the agreement includes $50 million to aid areas damaged by Hurricane Irene, funds to build stronger road infrastructure, and programs to stimulate jobs for the poor.
The city's state council also endorsed the plan, with Councilman Jumaane Williams expressing his support by stating the change would provide "New Yorkers a fighting chance in this economy."