Albany lawmakers on Wednesday passed a major overhaul of the state’s tax code that will mean higher taxes for the wealthiest New Yorkers and a tax break for millions of residents, pending the approval of the State Assembly.

The measure passed the State Assembly by a vote of 130 to 8, and the State Senate 55-0.

The legislation will give the average middle class household a tax break of about $300 to $400 a year.

It also does away with the Metropolitan Transportation Authority Payroll tax.

However, New Yorkers earning $2 million a year will see their base tax rates jump.

The new tax rate would actually be lower than what many wealthy New Yorkers currently pay because of a surcharge on the state’s highest earners that is due to expire at the end of the year.

The measure represents an about-face from Governor Andrew Cuomo, who earlier this year said he thought that raising taxes would be “counterproductive for the state.”

He said the new plan is a balanced way to address the state’s projected $3.5 billion deficit.

“New Yorkers know we are in difficult times, but they want us to be fair in how we handle it, our tax code today is just not fair,” Cuomo said. “The additional revenue generated will make a significant difference to our state to help close the deficit. I think this is fair. I think it will benefit all New Yorkers in the long-term.”

(Source: NY1)