I have already reported on an new tax that is going to kick in on January 1. It comes in via the In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.
Bloomberg has some more details:
... the impending arrival of the unearned income Medicare contribution tax...will further raise tax rates on income from saving.
Scheduled to take effect on Jan. 1, the tax, which was adopted as part of the 2010 health-care law, is a 3.8 percent levy on interest, dividends, capital gains and passive business income received by taxpayers with incomes exceeding $200,000 (or $250,000 for couples).Bloomberg also reveals how this tax was passed into law, without many aware of it at the time:
Because the new tax was added to the health-care law late in the process without congressional hearings, it received little attention at the time. With only a few weeks left before it takes effect, it remains largely unknown.Bloomberg outlines some Congressional lies about the tax:
One problem with the unearned income Medicare contribution tax is the name Congress chose for it, which is a triple misnomer. The income that will be subject to the tax isn’t unearned -- it is earned by savers who receive market rewards for delaying consumption and providing funds to finance business investment.
Also, because the proceeds will be paid into the general treasury, the tax will have no financial link to Medicare. And, of course, the tax will be a compulsory payment, not a voluntary contribution.