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Kinder Morgan Management LLC Message Board

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  • seebelow561 seebelow561 Jul 13, 2012 1:27 PM Flag

    Future tax increases squeezing KMR up?

    True on the LT gain likely to be 20%, but the point is that dividends are likely to be taxed as income instead of the present 15% rate....thats what makes the LT gain status of the KMR "dividend" so attractive.

    To the first replier who seems to maintain that almost no one who receives dividends pays taxes anyway, I completely disagree. That is just not the case.

    Additionally, the new 3.8% Medicare tax applies specifically to net investment income and only to those earning over $200,000 individual $250,000 joint.

    And this is just the beginning. The health care exchange subsidies apply to individuals making $11,400 to $43,000 and families of four earning $29,400 to $88,000......and the subsidies are substantial. They buy the cost of family health insurance down to 9.5% of income or less-a sliding scale that drops to 2%. That means someone with a family of four and family earnings in the $80,000 range would only pay about $8,400/ year for a reasonable benefit health plan (on their own, with no employer involvement). The total cost is likely to be about $15,000/ year. That means the federal subsidy is about $6,600/ year (at least, and much more for a lower earning family). A person who has a family income of $45,000 only pays a net $4,275 for the family health plan and thus gets a $10,725 subsidy. Can you possibly imagine how much that is going to cost for the millions that would be eligible?? And don't tell me you only pay $150/ week for your plan at work so this is nothing special. Family insurance costs your employer about $15,000/ year and after the employer contribution there is "only" $150/week left over for you to pay. The federal government is stepping in and providing a subsidy that is comparable to the "employer group plan contribution" that you now enjoy with Federal money so that everyone can afford to cover their families. A noble idea, but it is an unfunded mandate that is going to cost a seemingly incalculable amount of money and will drive health care spending much higher, as Medicare did when it was introduced in the 60s. I'm not opposed to people having health insurance, just pointing out that it is going to be paid for by deficit spending and soaring taxes.

    And the employer "penalties" for not offering affordable coverage (adequate coverage that costs less than 9.5% of income) only apply to companies with over 50 employees...so most of the people receiving the subsidy will have no offsetting employer provided penalty/ funding! And even those who work for companies with 50+ employees would only have an employer penalty of $3,000 maximum....way short of the subsidy received!

    And those that earn less than 133% of the Federal Poverty Level ($11,400 individual/ $29,400 family) will get free Medicaid coverage.....for adults! That is the "Medicaid expansion" that makes millions of ADULTS eligible for free coverage that are not presently eligible....and the Feds pay the extra cost for the next few years and into the future. Can you imagine what that will cost!! I understand many will not take advantage of the health insurance exchange subsidy because they still have to pay something, but everyone will take free insurance. Emergency care at hospitals for low income adults will now be paid by the federal government (with your taxes and deficit spending).

    Obamacare is incredibly revenue negative.
    TAXES ARE GOING TO SOAR in every fashion the feds can devise.
    KMR is a hiding place as long as the LT capital gains are taxed lower than regular income and/or dividends

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KMR
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