Plan ahead for the Health Care Reform new taxes
The Health Care Reform is a fact. Repeal, though favored by the majority of the public (just as many opposed the Reform prior to passage), is unrealistic. Thus the tax burdens are equally a fact. Best to be prepared for them.
Many politicians, like Senator Schumer and Senator Gillibrand, who favored the Health Care Reform waxed on about how only the “rich” will be affected. They spared no words in describing how the “rich” can afford to pay more of the share of the burden that Health Care Reform will bring. But they did not state the exact truth – possibly because they failed to read the Bill prior to voting in favor of it (neither Senator of New York has yet to respond to the question asked several times, “Have you read the Bill?”).
In fact Americans that don’t make $200,000 ($250,000 for married couples) may still be liable for the new taxes that will be coming down. Here is one example:
Anne, a single filer, earns $40,000 but has an investment windfall of $190,000, for total income of $230,000. Because she has investment income of $30,000 above her $200,000 threshold, she would owe $1,140 of additional tax.
A windfall investment might be from a spouse or family member, a lottery win, a legal settlement, solid investments, or a combination of all the above. In fact the sale of a home could do it too.
Fred and Fran, who bought their home in a New York suburb for $50,000 in 1972, sell it in 2013 for $800,000 (though it was worth $1 million). After subtracting the $50,000 cost and $500,000 exclusion, they have investment income of $250,000. Net tax due – not including regular taxes – $9500 additional.
Remeber that this is the new tax on these individuals. They will also be responsible for income taxes as normal. Plus this does not factor in the increases of income taxes (on average 3%) that will occur on Jan 1st 2011 when Democrats allow the Bush tax cuts to expire – as they have promied to do. That tax increase reaches down to those in the middle class.
Plus there is the cost of health care to be factored in. This is a mandatory cost that must be paid. Estimates are an increased cost of $2500, which is seperate of taxes. But only the “rich” are being taxed.
Of course Senator Schumer, Senator Gillibrand, Rep. Maurice Hinchey, and your local politicians explained this to you during the town halls and responses to letters from constituents right? That’s why they expect your re-election vote. Because they are working for you, and telling you everything you need to know. Plus they are doing what you want them to do. Right?
