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Posted on 03/19/2010 9:42:11 AM PDT by SmartInsight
High-income families would be hit with a tax increase on wages and a new levy on investments under President Barack Obama's health care overhaul bill.
For the first time, the Medicare payroll tax would be applied to investment income, beginning in 2013. A new 3.8 percent tax would be imposed on interest, dividends, capital gains and other investment income for individuals making more than $200,000 a year and couples making more than $250,000.
The bill also would increase the Medicare payroll tax by 0.9 percentage point to 2.35 percent on wages above $200,000 for individuals and $250,000 for married couples filing jointly.
The new tax on investment income is higher than the 2.9 percent tax proposed by Obama. House Democratic leaders increased it so they could reduce the impact of a new tax on high-cost health insurance plans strongly opposed by labor unions.
(Excerpt) Read more at cnbc.com ...
Are they saying that the 3.8% increase in the capital gains tax goes into effect in 2013, or would it go into effect immediately?
There are two components, Obama will increase captital gains taxes , then ON TOP of that they are adding the 3.8% medicare taxes on investments starting in 2013.
“The president wants to increase the top tax rate on capital gains and dividends from 15 percent to 20 percent. If Congress goes along, the new top rate would be 23.8 percent in 2013, when the health care taxes kick in.”
(from this article)
While a simple majority of the House can impeach, it requires a two thirds supermajority of the Senate to convict. Republicans have a decent shot at getting a simple majority in November, but they're not going to get two thirds of the Senate. He's here through 2012 at least.
Actually, going from 15% cap gains tax to 23.5% is 57% increase over the current taxes!!!
This could bring about the end of legal marriages among our brightest and best income producers:
“For the first time, the Medicare payroll tax would be applied to investment income, beginning in 2013. A new 3.8 percent tax would be imposed on interest, dividends, capital gains and other investment income for individuals making more than $200,000 a year and couples making more than $250,000.
The bill also would increase the Medicare payroll tax by 0.9 percentage point to 2.35 percent on wages above $200,000 for individuals and $250,000 for married couples filing jointly.”
“Democrats argue that high-income families fared well under tax cuts enacted in the past decade, so it’s time to pay up.”
—How exactly does that apply to me, in my first year of earnings?
“The new tax on investment income is higher than the 2.9 percent tax proposed by Obama. House Democratic leaders increased it so they could reduce the impact of a new tax on high-cost health insurance plans strongly opposed by labor unions.”
—The left hates Obamacare, the right hates Obamacare. So now we know who’s really pulling the strings.
“The 40 percent tax on health benefits would be delayed until 2018 and would apply only to premiums exceeding $10,200 a year for individuals and $27,500 for families.”
—Health care costs will skyrocket by then, and it will not take much for families to be well within the range for these benefit taxes.
“Both Social Security and Medicare are supported by broad-based payroll taxes. Although the rich pay more — they have bigger incomes — the burden is shared by the middle class and even the working poor.”
—B.S. The bottom 40% of earners pay no taxes whatsoever, and many even receive tax rebates.
“Unless they are very conscientious folks who constantly monitor their income tax withholding, they’re going to have quite a surprise when they go to file their income taxes.”
—The current health bill includes the hiring of 16,000 new IRS thugs to make sure you don’t slip up. They have unlimited, year-round access to your bank account.
“The president wants to increase the top tax rate on capital gains and dividends from 15 percent to 20 percent. If Congress goes along, the new top rate would be 23.8 percent in 2013, when the health care taxes kick in.”
—So now people will do everything they can to invest in other countries, and other countries will increasingly stay out of here.
Liberals are thieves and traitors.
its also going to cost jobs and job growth..they already had a 21% medicare cut effective march 1...they are not cutting waste...just services
Exactly the reason so many high wage earners have chosen to idle their business endeavors and ride this one out under the $250K radar screen.
A decade ago in Kalifornia, many high wage earners left the state, tax revenues dropped helping to usher in that states present fiscal crisis.
The article still has the same title, when you click on the article link, but on CNBC home page it says:
“Paying for the Healthcare bill, $438 BILLION in New Taxes, Fees”
“The health-care bill would raise $438 billion in new taxes over the next decade, mainly from high-income taxpayers and fees on the health care industry.”
These new taxes, along with the end of the Bush tax cuts, are going to push the total marginal tax rate on investment income up over 50% for high income people in many states. That’s a disastrous idea for America. Who does Pelosi think are the risk-taking investors who build the new companies that have created all the new jobs in America since 1981? It’s not the gangbangers, union slobs, and government bureaucrats who invest in new companies and build our economy. It’s the high income entrepreneurs and investors who create economic growth. Pelosi, Reid, and Zero know zilch about economics and free enterprise. They are socialists who only know how to screw over productive people, steal their income and wealth, and redistribute it to unproductive slobs who never worked in school, never built up their skills & knowledge, and can’t get good jobs now.
We must take control of the House in 2010 and repeal this monstrosity and the associated tax increases and income redistribution schemes, and send idiotic Nancy back to SF to be just another dumb democrat congresscritter.
It is, indeed.
If this passes there will follow eight months of growing rage by election day.
This paragraph is misleading. The 15% tax rate only applies to qualified stock dividends and long-term capital gains on investments held for at least 1 year. It doesn't apply to interest income on taxable bonds or short-term capital gains on investments held less than one year. That income is taxed at the full marginal rate for ordinary income which is going to rise to over 50% for high income people in many states. This means that if an investor buys a stock in January and it rallies up to a price where he thinks it's fully-valued by November, then he has to either pay over a 50% tax on that capital gain if he sells the stock in November, or wait until the next January to sell the stock and take the risk that the price may fall well below the fully-valued price he sees in November. This is the kind of stupid over-taxation that puts people in these absurd situations where they can't make economically sound investment decisions and run their own economic lives freely.
The very high marginal tax rates on fully taxable bond interest will also further increases the distortion of investment decisions caused by the tax system and further increase the flow of capital into tax-free municipal bonds and away from the much more productive private sector. If you're in a 52% marginal tax bracket, why buy corporate bonds that pay a 5.5% yield when you can buy tax-free municipal bonds that pay 4%. Federal marginal tax rates need to be reduced, not raised, on ordinary income to increase economic growth and reduce the incentive to invest in muni bonds rather than the far more productive private sector.
That 12,000 to 15,000 dollar a year forced mandated insurance premium won’t go over very well either.
How many of the pro-DeathCare idiots even know this unConstitutional forced “HANDS ON ALL OUR BODIES” pig of a bill ain’t FREE PIE for the masses?
The New Revolution has never been closer than now.
That was the first thing that struck me about this. Crooks.
“That 12,000 to 15,000 dollar a year forced mandated insurance premium won’t go over very well either.”
That’s easy — health people will not buy insurance, easier to pay the $800 penatly fee per year, because if they get sick, then they buy insurance, since the insurance company can’t deny them coverage based on pre-existing condition. So the only insured people will be those whose treatment costs far exceed the premiums they are paying.
How long do you think the insurance companies will be able to stay in business? Then of course the ONLY “insurance” that will exist is the government, with revenues having to come from taxes.
It’s not just Granny and Gramps that is getting whacked so illegals can have free health care.
MILITARY & Retired MILITARY
Veterans’ G.I. Bill benefits MIA
http://www.dailycamera.com/news/ci_14516354#axzz0hJ33foKo
TRI CARE FOR LIFE This from a google search:
http://economicspolitics.blogspot.com/2009/05/tricare-for-life-is-obama-trying-to.html
This option would help reduce the costs of TFL, as well as costs for Medicare, by introducing minimum out-of pocket requirements for beneficiaries. Under this option, TFL would not cover any of the first $525 of an enrollee’s cost-sharing liabilities for calendar year 2011 and would limit coverage to 50 percent of the next $4,725 in Medicare cost sharing that the beneficiary incurred. (Because all further cost sharing would be covered by TFL, enrollees could not pay more than $2,888 in cost sharing in that year.) http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf
Pushing Veterans Toward the Grave
http://www.christianpost.com/blogs/opinion/2009/08/pushing-veterans-toward-the-grave-31/
Outrage: Filipino Vets Waiting for the Big Payout
http://bulletin.aarp.org/yourmoney/personalfinance/articles/outrage_filipino_vets_waiting_for_the_big_payout.html
“These veterans have been waiting for these benefits for a very long time—more than 60 years. Now that the money is there, there may not be enough,” Arcebal says.
Bill Would Restrict Veterans’ Health Care Options
http://www.vawatchdog.org/09/hcva09/hcva110609-1.htm
Congress plans to block Tricare fee increases
http://www.armytimes.com/news/2009/10/military_tricarefees_blocked_100709w
http://www.navytimes.com/news/2009/10/military_tricarefees_blocked_100709w/
By Rick Maze - Staff writer, Oct 7, 2009
Tricare fee increases imposed last week by the Defense Department will be repealed by a provision of the compromise 2010 defense authorization bill unveiled Wednesday by House and Senate negotiators.
The fee increases were announced on Sept. 30 and took effect on Oct. 1, but the defense bill, HR 2647, includes a provision barring any fee increases until the start of fiscal 2011.
Retired Army Maj. Gen. Bill Matz, president of the National Association for Uniformed Services, said the announcement of fee increases was shocking considering that the Obama administration promised earlier this year to hold off on any new fee Tricare fee increases until fiscal 2011.
“That 12,000 to 15,000 dollar a year forced mandated insurance premium won’t go over very well either.”
When I’m in jail at least I’ll get “3 hots and a cot”.
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