Senate healthcare bill steepens payroll tax for high-earners in 2013, of course, after the 2012 election,
Senate Majority Leader Harry Reid (D-Nev.) released a manager’s amendment to the healthcare bill finalizing its legislative language on Saturday morning that contained a provision increasing the payroll tax beyond levels called for in the initial Senate bill.
Where the first version of the bill called for a 0.5 percent additional tax on high-earning Americans’ FICA and SECA taxes, the manager’s amendment increases the levy to a 0.9 percent rate.
The tax, which would begin in 2013, would apply to incomes in excess of $250,000 for a joint tax return and over $200,000 for any other tax filing.
Which reminds me of the Alternative Minimum Tax when it was first proposed.
How’s that AMT working for you now? I almost never quote from Wikipedia, but this is accurate
Because the AMT is not indexed to inflation and because of recent tax cuts, an increasing number of middle-income taxpayers have been finding themselves subject to this tax.
Any voter’s regrets, high earners who gave the Dems control of the Congress and put Obama in office, or are you waiting until 2013?
And, by the way, if you don’t fit in the “high earner” category and think this won’t affect you, think again:
The manager’s amendment also increases the tax on medical devices, levies a tax on “indoor tanning services,” and increases the penalty for violation of the mandate for families with incomes of more than $37,500.