House Way and Means Chairman Kevin Brady (R-TX), joined by members of the House Republican leadership, introduce tax reform legislation November 2, 2017 in Washington, DC.
The GOP’s tax plan contains a little-noticed tax hike on big earners that could add another $12,000 to their annual tax bill.
First highlighted in Politico, the provision in the new plan would claw back one of the benefits that wealthy taxpayers enjoy in the tax code. The plan calls for taxpayers to pay the lowest tax rate — 12 percent — on the first $45,000 of their income. But the plan would take that benefit away from those making $1 million or more.
So for someone making more than $1 million, instead of paying 12 percent on their first $45,000, they would pay…