Americans for Tax Reform : Obamacare’s Tax Hike Train Wreck
Home » Financial » American Finance » Americans for Tax Reform : Obamacare’s Tax Hike Train Wreck

Americans for Tax Reform : Obamacare’s Tax Hike Train Wreck

Americans for Tax Reform : Obamacare’s Tax Hike Train Wreck

April 30, 2013

John Kartch

The most destructive Obamacare tax increases are just around the bend

 

Asked about Senator Max Baucus’s recent “train wreck” comments, President Obama today said, “A huge chunk of it [Obamacare] has already been implemented.” Unmentioned was the wave of destructive Obamacare tax increases that will begin to hit Americans during the 2014 tax filing season and beyond:

Starting in tax year 2013:

Obamacare Surtax on Investment Income:  A new, 3.8 percent surtax on investment income earned in households making at least $250,000 ($200,000 single). This tax hike results in the following top tax rates on investment income:

Capital Gains Dividends Other*
2013+ 23.8% 43.4% 43.4%

*Other unearned income includes (for surtax purposes) gross income from interest, annuities, royalties, net rents, and passive income in partnerships and Subchapter-S corporations.  It does not include municipal bond interest or life insurance proceeds, since those do not add to gross income.  It does not include active trade or business income, fair market value sales of ownership in pass-through entities, or distributions from retirement plans. (Bill: Reconciliation Act; Page: 87-93)

Obamacare Medicare Payroll Tax Increase:

First $200,000($250,000 Married)

Employer/Employee

All Remaining WagesEmployer/Employee

 

Pre-Obamacare 1.45%/1.45%2.9% self-employed 1.45%/1.45%2.9% self employed
Obamacare 1.45%/1.45%2.9% self-employed 1.45%/2.35%3.8% self-employed

(Bill: PPACA, Reconciliation Act; Page: 2,000-2,003; 87-93)

Obamacare Medical Device Tax:  Medical device manufacturers employ 409,000 people in 12,000 plants across the country. Obamacare imposes a new 2.3 percent excise tax on gross sales – even if the company does not earn a profit in a given year.  In addition to killing small business jobs and impacting research and development budgets, this will make everything from pacemakers to artificial hips more expensive. (Bill: PPACA; Page: 1,980-1,986)

Obamacare High Medical Bills Tax: Before Obamacare, Americans facing high medical expenses were allowed a deduction to the extent that those expenses exceed 7.5 percent of adjusted gross income (AGI).  Obamacare now imposes a threshold of 10 percent of AGI.  Therefore, Obamacare not only makes it more difficult to claim this deduction, it widens the net of taxable income. According to the IRS, 10 million families took advantage of this tax deduction in 2009, the latest year of available data. Almost all are middle class. The average taxpayer claiming this deduction earned just over $53,000 annually. ATR estimates that the average income tax increase for the average family claiming this tax benefit will be $200 – $400 per year. To learn more about this tax, click here.  (Bill: PPACA; Page: 1,994-1,995)

 

Continue reading at Americans for Tax Reform : Obamacare’s Tax Hike Train Wreck.

Be Sociable, Share!

You must be logged in to post a comment Login

http://ad4.liverail.com/?LR_PUBLISHER_ID=26258&LR_SCHEMA=vast2-vpaid&LR_VERTICAL=preroll&LR_URL=[page_url_macro]&LR_AUTOPLAY=0&LR_CONTENT=6&LR_MUTED=0&LR_VIDEO_ID=[player_videoid_macro]&LR_TITLE=[video_title_macro]