Does anyone wonder why Mitt Romney and Paul Ryan are so determined to kill Obamacare and Medicare? The flap about the 47% and how 7% who are millionaires pay no taxes at all, got me thinking. How can that be? Actually it is pretty easy if it is all or mostly investment income. Then I remembered something about Obamacare that must make them frantic to get rid of it and give Medicare to their insurance cronies.
Starting January 1, 2013 net investment income (already under taxed) will be subject to a 3.8% Medicare Tax. Romney could owe another $600,000 in taxes and he isn't the richest of the fat cats who will be paying this.
http://www.schwabe.com/...No wonder they are so frantic. These economic parasites will be doing something constructive for the country, contribute. They can't even do that without whining and lying and trying to scare the heck out of grandma.
An overly simplified summary of the tax as it applies to any individual might be as follows:
Each person will be taxed - in addition to his/her income tax - on 3.8% of the amount that the following income causes adjusted gross income to exceed $250,000 (for joint filers) or $200,000 (for non-married filers):
1. Nonbusiness interest, dividends, annuities, royalties, and rents;
2. Other gross income of a passive activity or a business trading financial instruments;
3. Net gain on the disposition of nonbusiness property (including net gain indirectly derived from disposition of a partnership interest or S corporation stock); and
4. Investment of any business's working capital.
Observation: The Medicare contribution tax is in addition to any other tax imposed by Subtitle A of the Code, relating to income taxes. The Medicare contribution tax is not deductible in computing the other subtitle A taxes.