Congress Is Thinking About A Sneaky New Scheme To Raise Taxes — And The Upper Middle Class Could Get Seriously Hosed
Nov. 24, 2012
The primary Fiscal Cliff challenge is this: Democrats insist on raising taxes on the rich. Republicans, who are terrified of Grover Norquist and primary challenges (and who generally hate tax hikes) refuse to do vote for tax hikes.
So the question is: How can you raise taxes and not actually vote for a tax hike? One possibility is to just wait, and let taxes automatically rise for everyone, but then this would represent fully hitting the Fiscal Cliff, and the middle class gets dinged.
Jonathan Weisman at The New York Times reports on one plan that’s being considered: It would prevent the rich (defined, perhaps, as people making over $250,000) from taking advantage of the lower marginal tax rates on the lower parts of their income.