The American Taxpayer Relief Act
addressed some important issues. It
also created what may be the world’s smallest tax bracket. As
an article published by Forbes points out, under the new law, singles whose taxable income falls between $398,350 and $400,000 face a rate of 35 percent. The Tax Policy Center has stated that less than 500 taxpayers fall into this group that spans just $1,650.

fewer than 500 people are spared from facing a rate of 39.6, which
applies to those whose taxable income falls above $400,000. The tiny tax bracket will
save those at the very top of the bracket $75.90 at tax time. Just why
did Congress
decide to break this group into its own category? As with some other
portions of the tax code, there doesn’t appear to a real reason.