Monday, April 26, 2010

Medicare Tax Hike on High Income Earners

Source: The Tax Foundation

Tax Foundation Report: Examples of Medicare Tax Hikes Faced by High-Income Taxpayers

Tax Foundation Outlines How Two New Medicare Taxes in Health Care Reform Bill Would Affect Various High-Income Taxpayers

Washington, DC, March 23, 2010 -- The health care reform legislation passed by the House Sunday contains several tax increases, including two new Medicare tax hikes on high-income taxpayers scheduled to go into effect in 2013. A new Tax Foundation report outlines eight examples of how the new tax would affect taxpayers of various income levels and sources as well as filing statuses.

The health care bill calls for an additional 0.9% Medicare Hospital Insurance Tax on earned income exceeding $200,000 for single taxpayers ($250,000 for married couples) and an "Unearned Income Medicare Contribution" of 3.8% on investment income for taxpayers with adjusted gross incomes (AGI) in excess of $200,000 for single filers ($250,000 for married filers).

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