Forget the fiscal cliff negotiations. If you’re a high-earning worker wondering if your taxes will go up in January, Reuters spotlights two new taxes coming your way courtesy of Obamacare:
The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.
The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.
The tax applies to a broad range of investment securities ranging from stocks and bonds to commodity securities and specialized derivatives.
The 159 pages of rules spell out when the tax applies to trusts and annuities, as well as to individual securities traders.
Released late on Friday, the new regulations include a 0.9 percent healthcare tax on wages for high-income individuals.
Together, the two taxes are estimated to raise $317.7 billion over 10 years, according to a Joint Committee on Taxation analysis released in June.
These two new taxes take effect January 1, regardless of whether President Barack Obama and Congressional Republicans agree to raise other taxes on high-earning Americans.
As the saying goes, if you want less of something, tax it. You’d think liberals could see that taxing high-earners into extinction very quickly guts the very social programs Big Government types love.