Starting next year, high-income individuals will pay another 0.9 percentage points on their earned income over $200,000 ($250,000 if married). That's on top of the 1.45% they currently pay on all of their wages.
For those with investment income, they also could be subject to a new 3.8% tax on at least a portion of their capital gains and dividends. (Here's a fuller explanation of how the Medicare tax increases will work.)
New mandate to buy insurance: Starting in 2014, individuals must be insured or pay a penalty.
The amount of the penalty rises annually from 2014 to 2016 and is adjusted for inflation thereafter.
In 2014, the penalty will be no more than $285 per family or 1% of income, whichever is greater. In 2015, the cap rises to $975 or 2% of income. And by 2016, the penalty would be up to $2,085 per family or 2.5% of income, whichever is greater.
The dollar amounts for a single adult would be $95, $325 and then $625 during that same time period.
However, the penalty couldn't exceed the national average premium of the lowest cost policy on the new health insurance exchanges.
Read the rest of the article
No comments:
Post a Comment