Widely unknown and a little stealthy, Congress passed two tax increases in 2010 as a sliver of the Health Care Reform Act. These two increases become effective January 1, 2013 and will increase the amount of Medicare tax paid by certain high income earners.
The first new tax is a 3.8% medicare surcharge on investment income.
For purposes of this tax investment income is defined to include taxable interest and dividends, long and short term capital gains, annuity income, passive rental income and royalties.
Distributions from pensions and other retirement accounts are not considered investment income.
The 3.8% tax is assessed on the smaller of taxpayer’s net investment income or the amount of Modified adjustment gross income in excess of a threshold amount. The threshold modified AGI amount is $200,000 for single filers and $250,000 for married joint filers.
The second new tax, also effective January 1, 2013, is a .9% medicare surtax on wages and self-employment income in excess of the above noted threshold amounts.
"According to the CCH Standard Federal Tax Reporter, as of 2013, it now takes 73,954 regular 8-1/2" x 11" sheets of paper to explain the complexity of the U.S. federal tax code!
Believe it or not, that represents an improvement from the trend that has existed since the end of World War 2, where the tool we developed to project the number of pages needed to explain the U.S. income tax code had anticipated that 77,030 pages would be needed in 2013."
Mr. Diesel, ...It was news to me since I didn't finish reading the 73,954 pages......Kid
Kid - Thanks for the post. Some of the blind mice that are followers of this numb#$%$ pres and his czars, cronies, etc., are finally starting to realize he has no grasp of reality and no credentials for the position he holds. His Obummercare and policies are costing people money and jobs. Yet, if there was no 2 -term limit, I would bet the liberals in this country would elect him again until utter destruction was evident. I truly believe that some people are, in fact, too stupid to vote. I worry about our union's future.
airborne, ...The too stupid to vote comment has merit. Before long, we'll have the inmates running the asylum. When I vote in CT, I have to present a photo ID. The Liberals, however, think that it a violation of voter's rights to have to show an ID, I just don't get it. The family of the newly elected Mayor of New Haven owes the State of CT. more than $1.M in back taxes. She is using the Schultz defense, "I know nothing" ..........Kid