Obamacare Tax changes
- A new Surtax on Investment Income impacts individuals making more than $200,000 a year or couples with $250,000 or more. They must pay a new 3.8% levy on income from investments, possibly including profits from the sale of a home.
- A new Medicare Tax adds to ObamaCare’s pain. These same high-earners must pay an additional .9% Medicare payroll tax on wages above $200,000 for individuals and $250,000 for couples. This means the current 2.9% Medicare payroll tax will be increased to a total of 3.8% — a big hit especially for the self-employed.
- The new Flexible Spending Account Tax limits the amount of money that workers can set aside tax-free for medical costs. ObamaCare sets the cap at $2,500 in order to collect another $13 billion from taxpayers. (Previously there was no cap; however some employers limited the amount worker could set aside.)
- Beginning January 1, ObamaCare also tightens the screws on Itemized Medical Deductions. The law raises the threshold for allowed deductions from 7.5% of adjusted gross income to 10%, further burdening those with the largest medical expenses by limiting how much of these costs they can deduct on their taxes. Hit to these taxpayers: $19 billion.
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