ALBANY — Personal income taxes for the upper middle class and the rich are about to skyrocket under a secret, soak-the-wealthy tax deal reached last night by Gov. Paterson and leaders of the Legislature, sources told The Post.

The two-tier tax plan would bring in $4 billion annually, in part by hiking income taxes a stunning 31 percent for all New Yorkers making more than $500,000 a year, the sources said.

A second, slightly lower tier would increase incomes taxes by 14.5 percent for singles earning $250,000 to $500,000 annually and for married and joint filers earning $300,000 to $500,000.

Taxpayers now hit the current top rate of 6.85 percent when their incomes reach $65,000. The Paterson plan would tax top-tier earners at 8.97 percent and second-tier earners at 7.85 percent.

via GOV CLINCHES DEAL ON HUGE TAX HIKES – New York Post.