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Gov. Andrew Cuomo said he wouldn't be able to provide a middle-class tax cut without preserving an 8.82 percent tax rate for New Yorkers earning more than $1.6 million a year.

(Screengrab from presentation livestream)

ALBANY, N.Y. -- Gov. Andrew Cuomo on Tuesday evening announced a plan to cut taxes on New Yorkers who make between $40,000 and $300,000 a year.

Cuomo told news outlets during a presentation inside the governor's mansion that the plan, if adopted, would save average middle-class taxpayers $250 a year. When fully implemented over the next few years, the savings will rise to $700 annually, he said.

The tax rate decrease proposal is as follows: For those making $40,000 to $150,000, their tax rate would decrease from 6.85 percent to 6.45 percent in the upcoming fiscal year, and the rate would decrease further to 5.5 percent when "fully effective."

For those making between $150,000 and $300,000, the rate would decrease from 6.85 percent to 6.65 percent in 2018 and to 6.0 percent when "fully effective."

The governor did not say when the effects would be fully implemented by under his proposal.

But to afford the tax cut, the so-called "millionaires' tax" will have to stay in effect, the governor said. That tax is an 8.82 percent tax rate for those who make more than $1.6 million a year. The tax was set to expire this year, but Cuomo will push to see it renewed.

"Frankly, we don't have the resources to lose the millionaires' revenues now and have the state function the way it should," Cuomo said.

Earlier in the presentation, Cuomo outlined the fiscal stress the state is facing, including a $3.5 billion deficit.

He also said the tax on high-income earners is crucial to funding other initiatives, including a proposed $163 million plan to cover full tuition costs for SUNY and CUNY students.

There are 45,000 millionaires in the state who pay money under that tax rate, Cuomo said. Of them, half don't live in New York, and 3 percent of them live in Upstate New York, he said.

However, John Flanagan (R-Long Island), the Senate's majority leader, has said he opposes the tax and that Cuomo should expect a budget battle. He said Tuesday that the tax might discourage successful people and corporations from moving here, possibly bringing jobs with them.

The budget presentation, which was broadcast live on the governor's website, angered many in Albany by the time it began. Cuomo initially did not publicly schedule a time to present the budget publicly, breaking tradition.

Instead, he met with lawmakers behind closed doors, angering local news outlets over the lack of transparency. He ultimately agreed to make the public presentation.