NY Senate Considers Tax Hike on the Wealthy

Senate Majority Leader Malcolm Smith says his democratic members are preparing to discuss whether to tax New York's wealthiest residents. Karen DeWitt has more from Albany.

REPORTER: There are two bills circulating among senate majority democrats that would increase income taxes on the wealthy. One with 18 sponsors would institute new higher tax brackets beginning on those making $250,000 a year or more. Another would offer debit card rebates to taxpayers to increase consumer spending. Senate leader Smith says democrats plan to meet in a lengthy closed door meeting Wednesday evening to talk about the bills.

SMITH: I think both bills warrant a lot of discussion, I myself have made my position clear that I think that's the last thing that we should be doing with regard to this budget.

REPORTER: Democrats would need all of their 32 members to vote for a tax hike in order for it to pass in the Senate. Smith says he doesn't know what the final outcome will be. In Albany I'm Karen DeWitt.