The House Health Care bill unveiled today includes a 3.8% Medicare tax on investment income (interest, dividends, capital gains, annuities, rents) earned by those with incomes in excess of $200,000 (single) and $250,000 (joint).
March 18, 2010
Wall Street Journal editorial, Obama’s New Investment Tax: A Sneaky Medicare Levy on Dividends and Capital Gains:
The White House’s new health-care proposal promises the “largest middle class tax cut for health care in history,” which is a creative way of describing a vast taxpayer-subsidized insurance entitlement. Naturally, the fine print goes on to describe one of the largest tax increases for health care in history, too.
This new ObamaCare bargain would for the first time apply the 2.9% Medicare payroll tax to “interest, dividends, annuities, royalties and rents,” so-called passive income that we are told includes capital gains, though the latter wasn’t explicitly mentioned in the proposal. This antigrowth investment tax would apply to singles earning more than $200,000 and joint filers over $250,000 and comes on top of the Senate’s 0.9-percentage-point increase in the payroll tax, which would bring the combined employee-employer share to 3.8%.
The rate hike on investment income would presumably take effect at the same time the 2001 and 2003 Bush tax cuts are due to expire next year, bringing the top rate to 22.9% as the current top capital gains rate would also rise to 20% from 15%. That’s a 52% jump, and the last time investors were slammed with anything comparable was 1986 when the capital gains rate bounced to 28% from 20%—or a 40% increase—as part of the Reagan tax reform that reduced income tax rates. …
If Americans need another reason to oppose ObamaCare, or more evidence of its destructiveness, here it is.
February 24, 2010
The tax centerpiece of President Obama’s $950 billion health care plan are (1) increasing the Medicare tax by 0.9% for those with incomes over $200,000 (single) and $250,000 (joint), and (2) extending the 2.9% Medicare tax on wages to investment income (interest, dividends, capital gains, etc.) on those “wealthy” taxpayers:
- Bloomberg, Obama Endorses Medicare Tax, More Drugmaker Fees
- Christian Science Monitor, Obama’s Health Care Plan Adds New Investment, Medicare Tax on Wealthy
- Future of Capitalism, Obama Goes for Tax Increases
- Greg Mankw, Financing Healthcare Reform
- The Hill, Tax Group Says Obama Healthcare Proposal Breaks Pledge
- Tax Vox, Obama Would Hit Investments With Medicare Tax, Water Down Insurance Levy
- Web CPA, Obama Presents Unified Health Care Legislation
February 23, 2010
More on Obamacare:
A bill so reckless that it has to be rammed through on a partisan vote on Christmas eve.
“Change you can believe in?
More like bullshit you can take a bath in, if you ask me.”