The House bill adds a new 5.4% surtax on high-income earnings, which are those single people earning $500,000 or more and families earning $1,000,000. Just to be clear that is an additional tax of $54,000 on such families, hey, no big deal, who cares if we soak the rich.
Not so fast, these limits are not indexed…remember the AMT, that was designed to catch a very few high-income people who escaped taxes and today it is including many middle income Americans. Congress is notoriously lax at correcting anything that lowers federal revenue (not surprising given that the money was likely spent many years ago).
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