Analysts at the Congressional Budget Office, an arm of Congress, estimated on March 13 that Medicare
surtax repeal could increase the federal budget deficit by $117 billion over the period from 2017 through 2026.
To easily administer the levy and protect taxpayers from a tax shock, it suggested the base of the
surtax be equivalent to the RPT's tax base.
Because the highest tax bracket for a trust is $11,950 in 2013, the net investment income subject to the
surtax is $438,050 ($450,000-$11,950).
8 percent
surtax because Roth income does not factor into MAGI, leaving this client with a significantly smaller tax liability because they were able to avoid the Medicare
surtax.
8% Medicare
surtax is applied on investment income when MAGI exceeds the threshold of $250,000 (married filing jointly) and $125,000 (married filling separately), they will need to pay a
surtax of $1,140 if they choose to file jointly if they file separately, however, they do not need to pay the
surtax because the wife's MAGI falls below the threshold.
He said without a list it may be difficult to sell this
surtax to voters.
total statutory "net income," plus the highest graduated
surtax rate,
As for new strategies advisors might follow with the implications of the healthcare
surtax, Kiely thinks only a one-time adjustment is necessary.
This health care overhaul will be paid for largely with a graduated income
surtax on high-income households, as well as four familiar business tax provisions--including a delay in the implementation of worldwide allocation of interest, a limit in treaty benefits for certain deductible payments, codification of the economic substance doctrine and savings from within the health care system.
4 percent
surtax on individuals and families with annual gross income exceeding $1 million.
The
surtax would rise for those earning $500,000 and rise again for those earning more than $1 million.
Significant pieces of recent legislation involving tax relief contained two offsets that would have a direct impact on retailers--a
surtax on higher-income Americans and information reporting on credit and debit card sales.
