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Pass the Pease, Please: A Modest Proposal to Help Out the “Fiscal Cliff” Negotiations

cliff_158409051Updated January 4, 2013: The American Taxpayer Relief Act of 2012 restores the original 3 percent phaseout of itemized deductions for income above $300,000 for married taxpayers filing jointly and $250,000 for single taxpayers. The Act also restores the 39.6 percent top rate for income above $450,000 for married taxpayers filing jointly and $400,000 for single taxpayers.

Most readers are aware that many provisions of the tax law “sunset” or expire at the end of 2012 if nothing happens before the end of the year.  One little-noticed provision could help both sides move beyond the current impasse.