Actually, taxes would increase by 8 percent, not 4

December 6, 2012
By

For high earners:

Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000.

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Additionally, the modified adjusted gross income threshold at which this Medicare tax will apply will not be indexed for inflation, which means an increasing number of taxpayers will be snared by this tax provision.

That’s in addition to the 4.6 percent hike when the Bush tax cuts expire. America’s top tax rate would effectively be 43.4 percent, higher than most of the world. And it would apply to more and more Americans over time.

What do you suppose that will do to the economy in the long run? Or the short run?

The 3.8 percent Obamacare increase will kick in, no matter what. So, politically, it might be best to give Obama the rest of the increase, and let him and the voters suffer the consequences.

5 Responses to Actually, taxes would increase by 8 percent, not 4

  1. Obama's Speech Coach on December 6, 2012 at 4:33 am

    Considering I’m still in the looter category, it sounds like a dire warning against getting a good job. But I’m gonna try, anyway.

  2. Jim,MtnViewCA,USA on December 6, 2012 at 8:34 am

    Get rid of the mortgage deduction.
    It would change the political climate overnight.

    • bobo on December 6, 2012 at 3:34 pm

      It would also decimate whats left of the economy.

  3. Goonions on December 8, 2012 at 7:25 am

    I want to get you guys opinion. We are coming up on tax time and I have a choice to make. I work overseas for a nonprofit so our income is way down there. We should get a tax return but I am really torn about that. I feel that we should pay some taxes regardless of income level and the taking back just drives up the deficit.

    One the other hand, I know that what I don’t take in a return they will just throw out the window. It is like giving a heroin addict more heroin. I hate to see the federal government get more that will just be wasted, especially with this administration. Also, the best way to get this beast off of our backs is to just starve it.

    Any thoughts on this?

  4. Baldev Gara on October 31, 2013 at 6:15 am

    This website is so thought provoking. I felt inspired by reading it!
    I think this place will become my new favorite site!

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