Friday, June 29, 2012

List of Obama's New Health Care Taxes

Tax
The health reform law changes the Medicare tax in two ways: It adds a surtax on wage income above a certain level, and it creates a new Medicare tax on investment income. Some high-income households will only be subject to one of those changes, and some will be subject to both.

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.

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