While Democrats continue to criticize the Republican House tax-reform plan as a big favor to the rich at the expense of the middle class, analysts are discovering it adds a little-noticed surcharge for the wealthy that effectively creates a 46 percent tax bracket, Politico reported.
While House Republicans claim the tax plan keeps the top individual rate unchanged at 39.6 percent, the proposed surcharge on Americans who earn more than $1 million in taxable income would trigger an extra 6 percent tax on the next $200,000 they earn.
Steve Moore, a tax expert at the Heritage Foundation, told Politico he was unaware of the surcharge.
“I was just in a briefing with the White House on this,” he said. “They didn’t mention that. It seems kind of bizarre to me.”
Sen. Rand Paul, R-Ky., said that while he’s happy with some aspects of the bill, it won’t deliver the “significant tax cut” Trump and Republicans promised.
Republican members of Congress, he said Thursday in an interview on “The Laura Ingraham Show,” have bought into the “class warfare” of the left, Lifezette reported.