Skip to comments.Medicare tax may apply to investment income (ObamaCare tax hike)
Posted on 02/28/2010 5:29:31 AM PST by Brugmansian
President Barack Obama's health plan proposal would extend Medicare taxes to the investment income of higher-earning households.
The health care proposal that the White House released last Monday would extend the existing 2.9% Medicare tax to unearned income including interest, dividends, annuities, royalties and rent for taxpayers with income exceeding $200,000 for singles and $250,000 for couples.
Currently, the Medicare tax is assessed only on wages or earned income.
The president also wants to hit these higher earners with an additional 0.9% Medicare tax on their earned income. The additional Medicare taxes are similar to those proposed in the Senate's health care bill.
The new taxes wouldn't affect income from active participation in S corporations, according to the administration.
Not surprisingly, the life insurance industry opposes the proposed changes
(Excerpt) Read more at investmentnews.com ...
This Obama is beyond belief.
There isn’t anything he can’t Ruin.
This would mess up my entire life, which is built on rental and interest income not being taxable.
Zero can go to hell.
This is an extraordinarily stupid and destructive proposal.
Is there ANY way we can get this loser out of office before he does more damage? 2012 is a long way off at the rate this Bozo is pulling stink grenades out his bunghole.
I had planned on living off rental income.
Those people employ and pay medicare taxes.
interest income not being taxable.
You have me interested. I don’t own rentals, but I’m certainly curious about interest income not being taxable.
Allow me to put this in simple terms. Medicare and Medicaid and all government health care and entitlement systems are completely and absoulutly BANKRUPT. They survive on borrowing from China and cost shifting claims to the private sector. Private insurance and retirement systems are solvent, even though they are being drained by the cost shift to the government fiascos. The socialist parasites are attempting to destroy the private system and replace it with a government system of higher taxes and rationing for all. I sure hope we can stop them.
The problem we have here...ain’t the lack of taxation...the right kind of tax....objects, entities or activities to tax...
its a mindset. The minds that created the problem ...are not capable of a solution....
It will be interesting to see how they intend to collect this, because right now it comes out of paychecks. Most of those new income sources don’t currently involve a withholding action, even though the mechanism exists.
Why is this a surprize to anyone ? This also applies to the decapitation tax which states are jumping on in the guise of protecting US from “global warming”. Its being set up to maintain bloated bureaucracies which states run by socialists refuse to reduce.
THEY WILL PUSH “RECONCILIATION” and pressure must be applied to house members warning them if they vote for it
OR OUT YOU GO
If you oppose paying for the medical needs of all Medicare beneficiaries through taxation, you should support abolishing Medicare.
If you support paying other people's medical bills through taxation, then you should support raising taxes - a lot.
But you can't support trillions for other people's medical bills AND not paying for it. That's our policy now - and it's a disaster.
Pretty soon everyone who has income gets fitted with meters to tax every breath. How about we tax the “earned income credit, a euphonism for federal welfare, local welfare, food stamps, rent supports, grants, subsidies and other forms of largess too?
Personal instance, I thought about going back into the workforce (I am living comfortably on investment and pension now). When I figure the taxes at our marginal level plus commuting and other work related expenses, I would be working for about 30% net of whatever amount I earned...I value my free time more than that.
It galls me to no end seeing a number of younger people who have no interest in being as successful as I was at accumulating things during my working years through hard work and denial. These are the same individuals who vote for crumbs like Ozero because they see him as their path to others assets. Frankly, I would burn my wealth rather than give it to some parasite.
Of course, it will give them a whole new resource of “revenue” for them to “borrow” from like they have Social Security. (Which is why it is also bankrupt) They now owe SS about 17 Trillion Dollars. They have literally emptied the cookie jar and replaced it with worthless little paper IOU’s which we will never see a dime of ever again.
These criminals should be in prison for having stolen our retirements many times over. Had they left it alone, SS would still be in good shape. WE HAVE TO TAKE A STAND AND STOP THIS THEFT!
Maybe folks need to look at claiming the “Amish” exemption. I don’t know exactly what forms need to be filled out to get this exemption, but I’m sure someone is looking into this. A philosophic or religious exemption does not necessarily need to be based on membership to a specific church.
It’s certainly crazy to do this with investment income. How low do we want the market to go now. Under 0bamacare the IRS will have real time ability to snatch money out of a bank account or probably investment account, you might as well buy some precious metals and put it in a safe in an undisclosed location.
If the extra wealth of wealthy Americans were, as Obama seems to believe, simply stuffed into mattresses, increasing taxes on it would only mean a little less wealth for the wealthy and lumpier mattresses.
HOWEVER, the half the equation that Obama doesn't understand is that the money soon to be confiscated (under the principle of fairness) would actually immediately find its way back into the economy in ways that make it possible for ordinary Americans to borrow for housing, cars, consumables, borrow for college, etc.
Some of it would otherwise find its way to companies large and small that need it to grow employment, buy equipment, put products on the shelves, and, yes, even meet the payroll.
So if you are worried about your employment or fear that a slow down in the economy might hurt you in some other way...thank Obama's taxes on the wealthy!
I got out of all traceable investments. I went to silver US coin and cash. Who cares about the miniscule intrest income at this point. By the way what do you think the tax rate will be when you want to withdraw money out of your 401.
I am a concientious objector...Cool.
It is called Communism.
I never expected anyone else to pay for my healthcare but the government made me set aside moneys for my own...and, not having spent it, I want it back with interest!!!
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