New York, Dec 7 (IANS): The state of New York will create multiple tax brackets for its citizens and slap higher taxes on the wealthiest residents in response to the sluggish national and state economies, a top official said.

New York state governor Andrew Cuomo announced Tuesday that he and other legislative leaders reached a deal to raise taxes on the wealthiest people, Xinhua reported.

The tentative agreement includes higher tax rates on the state's top earners and a tax cut for the middle class.

"This would be lowest tax rate for middle class families in 58 years," Cuomo said.

"This job-creating economic plan defies the political gridlock that has paralysed Washington and shows that we can make government work for the people of this state once again."

The current tax policy of New York includes taxing any individuals who earn $20,000 or more, as well as couples who earn $40,000 or more, at the same 6.85 percent rate.

Individuals who earn more than $200,000 a year, and couples who earn more than $300,000, have been subjected to a tax surcharge called a "millionaires' tax".

According to media reports, a civil society movement recently dubbed Cuomo "Gov. 1 Percent" for protecting the rich, many of whom are his political donors.