New Affordable Care Act tax hike for high earners kicks in with the new year

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New Affordable Care Act tax hike for high earners kicks in with the new year

by Joan McCarter

With or without going over the fiscal cliff curb, high earners are going to see a little bit more taken out of their paychecks beginning Jan. 1 to help pay for the Affordable Care Act.

Currently, wage earners pay a Medicare tax of 1.45%, which is automatically taken out of their paychecks. Employers pay a matching 1.45% rate. Those taxes won't change.

But come Jan. 1, individuals earning more than $200,000 in wages and married couples with wages of more than $250,000 will pay an additional payroll tax of 0.9% for Medicare on income that exceeds those amounts.

Employers will be able to deduct the extra 0.9% tax for individual employees on the portion of income that exceeds $200,000, but they won't be allowed to withhold additional payroll taxes to account for a combined income.

That means that couples filing jointly who make more than $250,000 combined will have to pay that additional 0.9 percent, because it won't be automatically withheld. Other new fees/taxes kicking in are a new tax deduction cap of $2,500 on flexible spending accounts, and for medical-device manufacturers, a 2.3 percent tax on products. All this is in preparation for 2014, when the health insurance exchanges are open for business and subsidies begin.

http://www.dailykos.com/story/2012/12/29/1173940/-New-Affordable-Care-Act-tax-hike-for-high-earners-kicks-in-with-the-new-year

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1. Kick! n/t

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2. The GOP’s Five Greatest Disappointments In 2012

The GOP’s Five Greatest Disappointments In 2012

Sahil Kapur

This was a bad year for the Republican Party. What started out as a year of hope that they would return to power ended in a series of profound disappointments that left party strategists debating whether the GOP would become a permanent minority unless they change course.

Here are the party’s five most disappointing moments.

<...>

3. Obamacare Upheld

On June 28, the Supreme Court broke Republicans’ hearts when it refused to strike down Obama’s signature legislative achievement.

It came at a time when Republican leaders were openly preparing for victory in quashing the Affordable Care Act. Even more depressing: the deciding vote in the 5-4 ruling came from one-time conservative hero, Chief Justice John Roberts, whose vote the right had mostly taken for granted. It left conservatives flummoxed and eager to understand his betrayal.

Now their only hope for repealing Obamacare was to defeat Obama.

4. Obama Reelected

On Nov. 6, Barack Obama was re-elected in a swift and brutal victory, sending shock waves through conservatives who were convinced they had the election in the bag. Mitt Romney was among those convinced he’d win, his campaign aides said, until well into election night.

- more -

http://tpmdc.talkingpointsmemo.com/2012/12/gop-five-greatest-disappointments-2012.php

Obama officially has 51% of the popular vote
http://www.democraticunderground.com/1251268969

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3. No comment? n/t

[L0oniX]

4. The homeless are very upset about this.

Walmart workers are going to revolt over this. How dare they make rich people pay more!

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5. It's a tie