All the discussions in Washington about taxes are pretty quiet on two important items.
First is the Alternative Minimum Tax (AMT). Originally designed to capture a few taxpayers paying little or no tax it has expanded to capture millions in its web. By failing to index for inflation and subsequent increases in the AMT rate, middle income taxapyers are being deprived of much of the itemized deductions to which they beleive they are entitled.
The second item which has yet to take effect is the new Medicare tax on investment income. As a means of helping to fund the Health Care act, a 3.8% additional tax will be placed on investment income. So someone in the 33% tax bracket will find they have their taxes on in vestment income increased by 11.52%! That is the amount of increase from 33% to 36.8%. Most taxpayers are unaware of this impending jump in their taxes.
These are what I can "back door taxes". Congress makesa a lot of noise about rate, brackets and not taxing the middle class. But as Congress shows the taxpayers rates and deductions with one hand, the other hand reaching into your pocket and taking away the dedections given with the first hand.