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12%  
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  • The Return of the Inflation Tax (tax surcharge in Pelosi health bill)

    11/06/2009 2:59:36 AM PST · by reaganaut1 · 9 replies · 787+ views
    Wall Street Journal ^ | November 6, 2009
    ... Buried in Nancy Pelosi's health-care bill is a provision that will partially repeal tax indexing for inflation, meaning that as their earnings rise over a lifetime these youngsters can look forward to paying higher rates even if their income gains aren't real. In order to raise enough money to make their plan look like it won't add to the deficit, House Democrats have deliberately not indexed two main tax features of their plan: the $500,000 threshold for the 5.4-percentage-point income tax surcharge; and the payroll level at which small businesses must pay a new 8% tax penalty for not...