How we're paying for the new health care bill-Get Ready for the New Investment Tax

[BlueToTheBone]

http://online.wsj.com/article/SB10001424052702304830704577496580986417316.html?mod=googlenews_wsj

It really is happening.

Until this week, investors were waiting to see what the Supreme Court would do about the 3.8 percentage-point surtax on investment income, part of President Obama's health-care overhaul. The Internal Revenue Service hasn't yet released guidance on the new tax.

So when the court affirmed the law on Thursday, investors—and tax advisers—started scrambling.

The new tax, which Congress passed in 2010, affects the net investment income of most joint filers with adjusted gross income of more than $250,000 ($200,000 for single filers). Starting on Jan. 1, 2013, the tax rates on long-term capital gains and dividends for these earners will jump from their current historic low of 15% to 18.8%, assuming Congress extends the current law.

If, on the other hand, Congress allows the tax rates set in 2001 and 2003 to expire on Dec. 31—an unlikely scenario, according to many experts—the top rate on capital gains will rise to 23.8% and the top rate on dividends will nearly triple, to 43.4%.

The good breakdown on the new investment tax is in the article. Wow. Now I know why the pubbies didn't want this to happen!

[cantbeserious]

1. About Time The 1% Took A Hit!

eom

[Sarah Ibarruri]

12. Yes! nt

[DJ13]

2. "If Congress allows the tax rates to expire on Dec. 31—an unlikely scenario"

Pretty confident, arent they?

[Ruby the Liberal]

7. That round of cuts includes the FICA/Medicare taxes

that is largely borne by the middle class (FICA tops out at income around 106k).

Now, letting the Bush unfunded war tax break for the top 2% expire is a different story, but unless we retake the house (and retain the Senate), I don't see them separating them.

I do remain uneasy about FICA/Medicare tax cuts. I get why they did it, but the long term effects are not pretty.

[russspeakeasy]

10. I hear you..

[Wounded Bear]

3. 'Bout time

[orpupilofnature57]

4. Fessy up time!!!

[Ruby the Liberal]

5. I would prefer to see a transaction tax

to slow down the HFT in the casino, but I'll take a LT Cap Gains tax as a bonus.

[Wounded Bear]

6. I want both.

[safeinOhio]

8. Feel free to tax

everything I net over $250,000 at 43%. I'd still be happy if you taxed it at 80%. You'd have to give me about $210,000 in a raise to even get started. I'm fine with dat.

[NYC_SKP]

9. ObamaCare taxing the rich to pay for caring for the poor?

Wow, when is the last time anything like THAT happened?

K/R!

[freshwest]

11. Oh My Gawd! He finally did it! Don't look, it's TEOTWAWKI!

[EC]

13. Good.

This money should be treated as income. This is the way these people make their living, it should be taxed as earnings. The taxed 2X's excuse doesn't wash, it's still new money in their accounts made off of the money that tax had already been paid on...so the new money was never taxed. It's earned and should be taxed as such.