The mandate goes into effect in 2014 and is just one of the
provisions that will help pay for the Affordable Care Act. The law will
subsidize coverage for low- and middle-income Americans and expand
eligibility for Medicaid. The federal government is set to spend more
than $1 trillion over the next decade to do so.
There are also a slew of spending cuts as well as other taxes and fees that will be paid by health sector companies and hospitals; employers and consumers.
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
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.)
Read more: http://money.cnn.com/2012/06/28/pf/taxes/health_reform_new_taxes/index.htm?iid=HP_LN&source=yahoo_hosted
There are also a slew of spending cuts as well as other taxes and fees that will be paid by health sector companies and hospitals; employers and consumers.
Individuals who will help foot the tab -- directly or indirectly -- include very high-income households, those with very generous health benefits at work, those who opt to remain uninsured and those who love a good indoor tan.
Medicare surtax: Starting in 2013, many individuals making more than $200,000 a year ($250,000 if married) will start paying more into Medicare.
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.)
Read more: http://money.cnn.com/2012/06/28/pf/taxes/health_reform_new_taxes/index.htm?iid=HP_LN&source=yahoo_hosted
1 comment:
We all know that something is going to be done about this deficit which means that social programs wil have to be cut. What I am hoping for is that there is some fairness and the poor and middle class are not destroyed in the process. We now know what Romney things about the 47% which means if he gets in there we have no chance of salvaging anything that makes a difference in our world .....and what we do know is that wealth will continue to go to the elite while working people have to apply for faxless payday advance from time to time.
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