New Medicare Tax

[Nashville]

The new 3.8% "medicare" tax on investment income is a misnomer.

1) It is not part of the self-employment tax calculation, as the tax appears on a separate line on the tax return.
2) If it is not self-employment tax, I'm assuming the "employers' portion" is not deductible as an adjustment. In
fact, it appears there is no "employer's portion" anyway.
3) The government says the revenue attributable to the tax is not earmarked for medicare. As a matter of fact,
not earmarked for anything, but goes into the general coffers just like other money.

A more accurate moniker for this new tax is "Obamacare tax" or "ACA tax", or what about that public relations nightmare
for every politician, just plain ole "Tax Increase."

[BOB W]

YUP........you got it...............

[DaveinTexas]

I can't find the article any longer

but I did read somewhere that the NII tax's purpose was solely to fund Obamacare. Leave to the Govt. to create a program, then raise taxes whose sole purpose....is....to....fund....the.....program. Wait a minute, have we all been had??!?

I'm going to have a bowl on my desk this year, I will mark it "The Dave Ferrari Fund". I will force all clients to contribute to the fund because owning a Ferrari is and should be a moral imperative. Any that refuse to pay into the fund will be penalized and a lien will be placed on their property. All future refunds will be offset by the penalty imposed by not paying into the fund. Once the fund is fully "funded" I will create another fund that must be fully funded. This is fun!

Off to bed now!