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Get Ready For The New Investment Tax

Saturday, June 30, 2012 - 9:00 AM
From the Wall Street Journal
Until this week, investors were waiting to see what the Supreme Court would do about the 3.8 percentage-point surtax on investment income, part of President Obama's health-care overhaul. The Internal Revenue Service hasn't yet released guidance on the new tax.

So when the court affirmed the law on Thursday, investors—and tax advisers—started scrambling.

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2
Ken TuminKen Tumin5,469 posts since
Nov 29, 2009
Rep Points: 125,077
1. Saturday, June 30, 2012 - 7:17 PM
I note, this tax is only on wealthy people, those with incomes of over $200,000 a year for single filers, or $250,000 a year for those filing joint returns. Anyone under those income levels is unaffected by this.
8
me1004me1004370 posts since
Jan 16, 2010
Rep Points: 2,572
2. Monday, July 2, 2012 - 10:35 PM
Two things to note here:

With interest rates approaching zero, most people do not have to worry about investment income anymore.

I think our govt conveniently forgets that a tax on investment income is an example of double taxation, since the money which has generated the investment income has already been taxed.
1
loulou544 posts since
Aug 3, 2010
Rep Points: 3,397
3. Monday, July 2, 2012 - 11:53 PM
a tax on investment income is an example of double taxation, since the money which has generated the investment income has already been taxed.
 
You need to get your mind straight and think like a bureaucrat ;)  Any income creates tax liability regardless of source, except Roth IRAs.  A pure example of double taxation are those imposed on SS benefits above a 25k AGI single limit / 32k joint.
1
CraigPDCraigPD94 posts since
Jun 12, 2010
Rep Points: 336
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