3.8% tax on passive income (cash, dividend, small business, investment)
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I am reading that obamacare will be paid for by a 3.8% tax imposed on passive income. Is there anything to do. A small business owner, already killed by taxes. All I have to say is I can see how businesses can be hurt big.
It appears that passive income is already taxed at rates far greater than 3.8%.
Passive Income: Earnings an individual derives from a rental property, limited partnership or other enterprise in which he or she is not activelyinvolved. As with non-passive income, passive income is usually taxable; however it is often treated differently by the Internal Revenue Service.
There are three main categories of income:
active income,
passive income and,
portfolio income. Passive income does not include earnings from wages or active business participation, nor does it include income from dividends, interest or capital gains.
Since interest and dividends are already taxed at the same rate as regular wages, a tax of 3.8% would be better not worse.
It is important to note that, by some, portfolio income is considered passive income; in which case dividends and interest would be considered passive. The important definition is the one the IRS uses, . Passive Income Definition | Investopedia
I am reading that obamacare will be paid for by a 3.8% tax imposed on passive income. Is there anything to do. A small business owner, already killed by taxes. All I have to say is I can see how businesses can be hurt big.
Where did you read this info? Can you provide a link? I believe this is one of the many misinformation floating out there by the insurance companies who are against the Affordable Care Act.
Where did you read this info? Can you provide a link? I believe this is one of the many misinformation floating out there by the insurance companies who are against the Affordable Care Act.
Medicare 3.8% tax on net investment income:
For tax years starting on or after January 1, 2013, the 2010 Health Care Bills impose a new 3.8% "Medicare Tax" on "net investment income"
in excess of specified amounts. <<<< The specific amount is if you make over $250,000.
Hmm, seems I got an e-mail saying they will also be paying for Obamacare by taxing the sale of a house or property... Didn't we fight a war to avoid these types of taxes?
Hmm, seems I got an e-mail saying they will also be paying for Obamacare by taxing the sale of a house or property... Didn't we fight a war to avoid these types of taxes?
I would wait for something a little more definitive than "i got an Email". The emails some of these Right Wing crazies circulate about Obama are laughable.
How about if your PASSIVE INCOME is over $250k?
Not that the principle is a good one to begin with.
But basing it on salary vs the income itself is dumb.
I would wait for something a little more definitive than "i got an Email". The emails some of these Right Wing crazies circulate about Obama are laughable.
Looks like this would only apply to people with incomes o ver 250k and gains on the sale over 500k. In other words don't worry about it.
I would wait for something a little more definitive than "i got an Email". The emails some of these Right Wing crazies circulate about Obama are laughable.
But not nearly as crazy as the idiot ideas from the Idiot-in-Chief in the White House!
Looks like this would only apply to people with incomes o ver 250k and gains on the sale over 500k. In other words don't worry about it.
Just another myth from the Myth-Maker-in-Chief.
"Soaking the rich" will not work; there aren't enough of them. These massive tax increases and wayward government spending being put forth by the Dems will affect everyone. For example, raising tax rates on dividends received by shareholders will affect ALL shareholders, not just the ones that Obama hates. Companies will revise their dividend policies when and if those rates go into effect.
Just yesterday the Wall Street Journal documented how the proposed tax rates would end up meaning that fully 64% of company profits will be confiscated by the government. First, by the corporate tax paid; second by the tax on dividends paid to shareholders; and third by this 3.8% tax on passive income. What a rip-off this government has become under Obama!!
It has also been proven that tax revenues will go DOWN as tax rates go UP. This is because the "tax-and-spend" policies of the Dems are a great de-motivator of business. Despite sitting upon large cash hordes (rightfully earned from the production of goods and services), companies are not hiring so freely because of The Great Socialist in the White House. They are pretty sure that he will attempt to confiscate as much wealth from the productive, to give to the non-productive.
Read up, Obamy-boys and -girls, you can't fling out falsehoods forever.
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