My reaction to the new 3.8% Medicare tax
The Tax Bill of 2010 approaches, but changes are already underway. Noteworthy to date is a radical departure in U.S. tax policy – a resurrection of the distinction between earned and unearned income(this is not correct, we currently have had a distinction between taxes on wage income and capital gain and dividends) , a new 3.8% Medicare tax on unearned income is now officially on the books. These new taxes would apply to income from interest, dividends, capital gains, royalties, annuities and rents. See my reaction to this new frontier in taxation in news articles from the Associated Press, Bloomberg News and IBD.
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"...to marshal more venture capital for more new industries -- the kind of efforts that begin with a couple of partners setting out to create and develop a new product -- we intend to lower the maximum capital gains tax rate."
"The tax on capital gains directly affects investment decisions, the mobility and flow of risk capital from static to more dynamic situations, the ease or difficulty experienced in new ventures in obtaining capital, and thereby the strength and potential for growth of the economy."