You always get into trouble anytime to try to tax “the rich” because there’s no universally defined level of what that means.
A rich person with a few kids in Kentucky may be merely “well off” in Manhattan.
As such, city-dwellers with a few kids to support will not be keen on one of the provisions embedded in Obamacare2.0.
Here’s a new tax from WhiteHouse.gov:
Broaden the Medicare Hospital Insurance (HI) Tax Base for High-Income Taxpayers.
Under current law, people who earn a salary pay the Medicare HI tax on their earned income, but those who have substantial unearned income do not, raising issues of fairness. The House bill includes a 5.4% surcharge on high-income households to improve the fairness of the tax system and to support health reform. The Senate bill includes an increase in the HI tax for high-income households for similar reasons, an increase of 0.9% on earnings above a specific threshold for a total employee assessment of 2.35% on these amounts. The President’s Proposal adopts the Senate bill approach and adds a 2.9 per cent assessment (equal to the combined employer and employee share of the existing HI tax) on income from interest, dividends, annuities, royalties and rents, other than such income which is derived in the ordinary course of a trade or business which is not a passive activity (e.g., income from active participation in S corporations) on taxpayers with respect to income above $200,000 for singles and $250,000 for married couples filing jointly. The additional revenues from the tax on earned income would be credited to the HI trust fund and the revenues from the tax on unearned income would be credited to the Supplemental Medical Insurance (SMI) trust fund.
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