The coming Congressional debate over fiscal policy is sure to feature a wide array of proposals, some of which would hit certain taxpayers harder than others.
But one idea being floated by Congressional negotiators, as described in an article by The New York Times’s Jonathan Weisman on Thursday, is hard to defend from the standpoint of rational public policy making.
Its arithmetic could require that the 300,000th dollar of income was taxed at a rate of about 50 percent – even while the three millionth dollar of income, or the three billionth, was taxed at a lower 35 percent rate instead.Here's an accompanying chart:
Silver has a detailed explanation of why the bubble would result under such a propsal, here. But, bottom line, regardless of the plan, taxes are going to go up and they will go up in a complex fashion to hide just how much they are going up.