‘Medicare Tax’ Now to be Called ‘Unearned Income Medicare Contribution’
The payroll tax increase that was formerly known as "Medicare tax" in both President Obama’s health care reform reconciliation proposal and the original House reconciliation bill is NOT A TAX. Repeat: NOT A TAX.
Sure, individuals with earnings over $200,000 and couples with earnings over $250,000 will have to fork over 3.8 percent of their capital gains (which were not formerly subject to Medicare taxes) to Medicare, in addition to .9 percent more of their earned income.
But among the 15 pages of changes to the Reconciliation Act included in the manager’s amendment released over the weekend was a wee name change: references to ‘Medicare tax’ were deleted, and replaced with the much gentler, and voluntary-sounding, ‘unearned income Medicare contribution.’
We called Speaker Nancy Pelosi’s office for more insight, and will pass along anything we hear back.
For a look at all the changes that the reconciliation bill would make in the health care reform law, check out our side-by-side comparison.
The effort to reform health care stands to affect different people in many different ways.
Latest Stories in this Project
Get Updates
Our Hottest Stories
- Freddie Mac Bets Against American Homeowners
- Why Fannie and Freddie Are Hesitating to Help Homeowners
- Bets Against Homeowners Must Stop, Freddie Mac Was Told
- Drive-by Scanning: Officials Expand Use and Dose of Radiation for Security Screening
- By the Numbers: Life and Death at Foxconn
- How the Stimulus Revived the Electric Car
- $10 Million Fine on Red Cross Highlights Its Troubled History of Blood Services
- Allergan Erases Doctor Payment Records
- With Spotlight on Super PAC Dollars, Nonprofits Escape Scrutiny
- Senators Slam Freddie on Bets Against Homeowners
- Freddie Mac Bets Against American Homeowners
- Drive-by Scanning: Officials Expand Use and Dose of Radiation for Security Screening
- How the Stimulus Revived the Electric Car
- Meet the Obscure Federal Regulator Who's Not Helping Homeowners
- By the Numbers: Life and Death at Foxconn
- Why Millions Won't Get Help From Big Mortgage Settlement
- Why Fannie and Freddie Are Hesitating to Help Homeowners
- $10 Million Fine on Red Cross Highlights Its Troubled History of Blood Services
- One Soldier's Progress Against Traumatic Brain Injury
- Bets Against Homeowners Must Stop, Freddie Mac Was Told
1 comments
James Bowen
March 24, 2010, 3:33 p.m.
All forms of unearned income should be taxed at the same progressive rates as wages and salaries including capital gains, dividends and inheritance income.
Commenting on this story is closed.