From The Beatles’ “Taxman”:
If you drive a car, I’ll tax the street
If you try to sit, I’ll tax your seat
If you get too cold, I’ll tax the heat
If you take a walk, I’ll tax your feet
As if one Medicare tax wasn’t enough already, get ready to pay double Medicare taxes under Obamacare if you’re what the government considers “wealthy.” Couples making over $250,000 and individuals making over $200,000 will be required to pay the Medicare payroll tax on their investment gains.
Currently, a 2.9% Medicare tax is levied on all wages, half of which is covered by the employer, and half by the employee, and if you’re lucky enough to be self-employed, you get to pay all of it. If these “wealthy” individuals decide to make real estate or stock investments which then incur gains, they will have to pay capital gains taxes. Beginning in January of next year, capital gains taxes will include an additional 3.8% Medicare payroll tax. So, in addition to the Medicare tax levied on regular salary, there will be a Medicare tax on investment gains.
And this is partly how Obamacare will pay for itself. Obamacare has already cut Medicare by over $700 billion over the next decade by reducing payments to doctors and hospitals. And in order to reduce the deficit, Obamacare will raise taxes by $1.5 trillion, part of which is the new Medicare tax, which will make the government over $300 billion over the next ten years. These new Medicare taxes coupled with the expiration of the Bush tax cuts at the end of this year will raise capital gains taxes on “wealthy” people to 23.8% on long-term investments and 43.4% on short-term investments, which include interest and rental income. This is up from 15% and 35% respectively under current policies.
Obama is bent on expanding socialized healthcare while simultaneously cutting benefits and raising taxes, the exact opposite of what needs to happen. So, if you’re one of those hard-working people who are guilty of being successful in your business or career, you will be penalized by having to pay even more for the older generation’s healthcare.
Just one more reason to repeal Obamacare and replace it with nothing.