This clawback, like the Pease Amendment , is hidden in a calculation. This is fraudulent — it intentionally tries to deceive. and tax law should not try to deceive taxpayers. With this maneuver, the Republicans are looking like the Democrats.
The lowest tax bracket is the 12% bracket. What the Republicans are trying to say is that you are wealthier, you should go from a 0% to 25% rate — and not get that 12% rate. What they are really doing with that calculation is making the tax rate go up to 46% and then back down to 35%. It’s not only stupid, it’s illogical and has no business in the tax code.
This provision is inequitable as it buries the increases in tax law by cloaking them with extra bubble tax bracket. The GOP can say they are clawbacking — it’s how the tax code works already — but what they want to do is put an extra bracket within a small amount (roughly between $1 million and $1.2 million) simply because they want to squeeze extra revenue. The GOP should have no part of this deceit and unnecessary complication. Already, in fact, the rich pay far more more than their fair share since the tax code is the most progressive in the developed world.