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!!!
Pay when you file your income tax return.
Oh, stop it!
If you were "paying for Medicare", you would have been paying upwards of $10,000/year!
You never did that, right?
What you did pay for wouldn't last you two days in a hospital, never mind two months in an ICU.
Abolish Medicare, or pay for it (really pay for it, I mean).
Those are the choices. The GOP policy - keep it, expand it to include drugs, incorporate all advances, and give it away for a premium of a tiny fraction of what it costs - is corrupt.
Your entire life has already been messed up by giving out public benefits grossly in excess of revenue for the last forty years, and now, there's nothing you can do about it.
Suck it up.
BTW, read my comment. I didn't say medicare shouldn't be shut down.
My comment is directed at the fact that medicare is just another way to add to the general fund and dump the liability and expense on future generations.
That's said, I would still like my money back...with interest!
Hold on there, Jimbo. The typical worker pays Medicare taxes for about 50 years, then is eligible for Medicare coverage for maybe 10 or 15 years after retirement. If the amount paid in over that 50 years (and matched by employers) had been set aside and invested it would buy an awful lot of health care.
So yes, we have been “paying for Medicare”. And as a small business owner with eight employees, I’ve been paying for a whole lot of Medicare!
The dollar amount would be too big for the government to rely on having the taxpayer realize how much it is. It would need to be collected in an incremental, withholding basis, just like the federal income tax and the current FICA / Medicare payroll taxes.
When milli0ns of Americans start seeing their 1040 refund be reduced by an additional Medicare tax, they may wake up and start asking questions. The elitss can't have that kind of thing.
The List, ping
The FEDS have access to your savings F D I C...............
As I understand it (may be incorrect) you can protect yourself from this tax by merely making sure that your unearned income (combined with any earned income) stays below the magic rich-folk level of $250,000. Now, learn to be a good little commie and keep your income low, where it should be, you naughty little comrade.
Exactly. I’m a very good little commie too! Income bad.
I have my entire life built around the current tax system.
I have subcontractors do the jobs I need so I don't have to have a payroll, withholding, or workers comp. I am setup as individual proprietorship so that I can report my income on my regular tax form. I have no withholding for social security and medicare since I am self employed, and I have no sales taxes that I have to collect, or report because my income is derived from “real property” in the form of rents, on which there is no sales tax.
Thanks for the explanation. We have somewhat the same philosophy, except part of my income is from military retirement, and part from self employed subcontractor. There are occasions where I wish I could afford workmans comp and payroll taxes.
I just don’t generate enough income to even come close to being able to justify either, and another person on payroll wouldn’t generate income, but suck it up.Occasionally I may sell something to someone, but I have to file state tax returns anyway so adding sales isn’t a big issue.
With all that said, consider any business that has a stabilized accounting system and can plot their future out ten years or so, and one can easily see, what the business/job climate is and will be for the foreseeable future with the anti business president now in the white House.
OBAMANOMICS—TRICKLE DOWN DESTRUCTION of the economy
SET THEIR LOCAL AND DC LINES ON FIRE!
Bambi doesn’t keep his promises...so buyer beware!
Sen Scott Brown’s number is 202-224-4543
Capitol Hill switchboard is 202-224-3121
Lots of local demwit phone numbers on this thread
Rename, repackage, rewrite it a tad smaller, and sell another pig in a poke. NO COLAs for granny, retired Military or retired fed employees. BIG NEW fees for Tricare for Life retired over 65 Military’s secondary health ins.
(DOD bill already passed, delayed but goes into effect 2011 NEEDS TO BE REPEALED!
OBAMAs WAR ON SENIORS http://www.freerepublic.com/focus/f-news/2433867/posts/
New Dem mantra: Woof, woof eat dog food granny....ala let them eat cake. http://www.lifenews.com/bio3058.html
Friday, February 19, 2010
Obama says slight fix will extend Social Security
Health Care Rationing for Seniors Another Problem in New Obama Plan http://www.lifenews.com/bio3058.html
SOCIALIZED MED THREAD http://www.freerepublic.com/focus/f-news/2460358/posts
TRI CARE FOR LIFE This from a google search:
This option would help reduce the costs of TFL, as well as costs for Medicare, by introducing minimum out-of pocket requirements for beneficiaries. Under this option, TFL would not cover any of the first $525 of an enrollees cost-sharing liabilities for calendar year 2011 and would limit coverage to 50 percent of the next $4,725 in Medicare cost sharing that the beneficiary incurred. (Because all further cost sharing would be covered by TFL, enrollees could not pay more than $2,888 in cost sharing in that year.) http://www.cbo.gov/ftpdocs/99xx/doc9925/12-18-HealthOptions.pdf
Bill Would Restrict Veterans Health Care Options 11/06/09
Buyer and McKeon Offer Amendments to Protect Veterans and TRICARE Beneficiaries
Congress plans to block Tricare fee increases
By Rick Maze - Staff writer, Oct 7, 2009
Tricare fee increases imposed last week by the Defense Department will be repealed by a provision of the compromise 2010 defense authorization bill unveiled Wednesday by House and Senate negotiators.
Snip The fee increases were announced on Sept. 30 and took effect on Oct. 1, but the defense bill, HR 2647, includes a provision barring any fee increases until the start of fiscal 2011.
Retired Army Maj. Gen. Bill Matz, president of the National Association for Uniformed Services, said the announcement of fee increases was shocking considering that the Obama administration promised earlier this year to hold off on any new fee Tricare fee increases until fiscal 2011.
President Obama and DoD assured NAUS and the entire military family earlier this year that there would rightly be no increases in any Tricare fees in fiscal 2010, Matz said. We took them at their word, and I cant believe that a co-pay increase like this was allowed to go forward, he added.
And the lives of millions of others as well, considering its negative effect on the entire economy.
That's because they are economic illiterates. They are only interest in growing government, and to hell with the private sector (whatever remains of it). Plus, they don't appreciate that if you tax an activity more, there will be less of it and that the economy is dynamic, not static.