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Response to TheWraith (Reply #6)

Wed Mar 14, 2012, 04:35 PM

8. Ok I'm just trying to understand where your numbers came from


Summary of funding

The Act's provisions are intended to be funded by a variety of taxes and offsets. Major sources of new revenue include a much-broadened Medicare tax on incomes over $200,000 and $250,000, for individual and joint filers respectively, an annual fee on insurance providers, and a 40% tax on "Cadillac" insurance policies. There are also taxes on pharmaceuticals, high-cost diagnostic equipment, and a 10% federal sales tax on indoor tanning services. Offsets are from intended cost savings such as improved fairness in the Medicare Advantage program relative to traditional Medicare.[33]

Summary of tax increases:

Broaden Medicare tax base for high-income taxpayers: $210.2 billion (NOT A TAX INCREASE ON INCOME)
Annual fee on health insurance providers: $60 billion
40% excise tax on health coverage in excess of $10,200/$27,500: $32 billion
Impose annual fee on manufacturers and importers of branded drugs: $27 billion
Impose 2.3% excise tax on manufacturers and importers of certain medical devices: $20 billion
Raise 7.5% Adjusted Gross Income floor on medical expenses deduction to 10%: $15.2 billion
Limit contributions to flexible spending arrangements in cafeteria plans to $2,500: $13 billion
All other revenue sources: $14.9 billion
Original budget estimates included a provision to require information reporting on payments to corporations, which had been projected to raise $17 billion, but the provision was repealed.[34]

There is no change to the income tax rate

"The marginal tax rate is the percentage paid on the last dollar a person earns. The current system has six marginal tax rate percentages 10, 15, 25, 28, 33 and 35 and each applies to a progressively higher amount of income. In theory, a wealthy filer pays the lower rates on income within each bracket, but the bulk of their income is taxed at the top 35 percent rate. Middle-class taxpayers generally pay marginal rates of 15 percent or 25 percent. "

The top marginal tax rate stands at 35%.

Tax Bracket Capital Gain Tax Rate by tax bracket.
Short Term Long Term
10% 10% 0%
15% 15%
25% 25% 15%
28% 28%
33% 33%
35% 35%

I see 35, and 15, not 39.6 and 20.

If you can explain it I will be very happy.

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TheWraith Mar 2012 OP
marlakay Mar 2012 #1
Ziggystrange Mar 2012 #2
TheWraith Mar 2012 #4
Ziggystrange Mar 2012 #5
TheWraith Mar 2012 #6
LineLineLineLineLineNew Reply Ok I'm just trying to understand where your numbers came from
Ziggystrange Mar 2012 #8
dmallind Mar 2012 #7
Nuclear Unicorn Mar 2012 #3
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