Thursday, August 12, 2010

How the New Wealth Taxes Will Punish You - WSJ.com

The health-care bill that Congress passed in March contained two surprising new taxes to help pay for the changes: an extra 0.9% levy on wages for couples earning more than $250,000 ($200,000 for singles) and a new 3.8% tax on investment income on those same people (technically, people with "adjusted gross incomes" above those amounts).

Each tax signals a radical change in tax policy.

For workers, the extra 0.9% levy puts a progressive element in what used to be a totally flat tax.

The 3.8% tax on investment income also knocks down a longstanding wall by applying a "payroll" tax to unearned income.

Until now, FICA taxes for Social Security and Medicare have applied only to wages, not investment income.



Read more here...

How the New Wealth Taxes Will Hit You - WSJ.com

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