wo of the lesser known and least understood provisions of the fiscal cliff legislation will raise taxes on high-income taxpayers by phasing out personal exemptions and the amount of itemized deductions wealthy taxpayers are allowed in 2013.
The set of rules, dubbed personal exemption phase-out (PEP) and Pease (named after former Congressman Donald Pease, who helped create it), were originally passed in the early 1990s, and remained in place until the Bush-era tax cuts of 2001 gradually eliminated them.
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