Under ObamaCARE Medicare double taxation begins next year

obamacare-insertHey great news seniors! The double taxation on Medicare begins next year! According to CNSNEWS, a second ObamaCARE tax Medicare begins next year. Those of you with investment income will be affected. This tax will effectively be raising taxes on investment income and taxing investors twice.

The provision, a little-known part of ObamaCare, levies a 3.8 percent Medicare tax on investment income for couples making more than $250,000 or individuals making more than $200,000 a year. The tax is scheduled to go into effect on January 1, 2013.

Currently, the government levies a 2.9 percent Medicare payroll tax on all wages, with half (1.45%) paid by the individual and half by the employer.

Beginning in 2013, couples making more than $250,000 (or individuals making $200,000) will have to pay an additional 3.8 percent Medicare tax on any investment income (unearned income) they might have.

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August 20, 2012 · Filed Under ObamaCARE, Taxes


Comments

  • http://twitter.com/ryukidn Shell

    Not to defend ANYTHING Obama, but this is not double taxation. Investment income is separate & different than wages.

    Wages, which are earned income from employment, are subject to medicare tax. Investment income, which is only the earnings from investing – not the original amount invested called the principle – is not currently subject to a medicare tax.

    The deductions for taxes, social security & medicare on your pay stub are assessed on your gross wages from work. But, if you take $50 of what you earned from work, and invest in say, stocks, and your stocks go up by a total of $5.00, that $5.00 is your investment income. The $50 principle that you invested is not taxed again – only the $5.00 investment income is taxed.

    Hope that helps clarify why this is not double taxation.