NEW YORK, NY March 30, 2009 —New York's wealthiest are set to pay more in income taxes in the state budget deal reached over the weekend. Governor Paterson and legislative leaders say their tax plan will generate another $4 billion in revenue. WNYC's Arun Venugopal has more.

REPORTER: The deal creates two new tax brackets: married couples earning between $300,000 and $500,000 would see their marginal rate increase from 6.85 to 7.85 percent. While those earning over half a million dollars a year would see a marginal rate of nearly nine percent.

Frank Mauro of the left-leaning Fiscal Policy Institute supports the measure, and says those rates are still far less than in the 70's, when the top rate was more than 15 percent. But Kathy Wylde of the business group Partnership for new York City says the state should try to cut more spending.

The legislature will vote on the measure, and the rest of the state budget, starting Tuesday. For WNYC, I'm Arun Venugopal.