Tuesday, March 23, 2010

Medicare Tax Hikes: What The Rich Will Pay

There are plenty of tax changes in the new health care reform bill, but the group of taxpayers that will be hit hardest are families making $250,000 or more per year. As this CNN Money.com article explains, they will get hit with pretty significant Medicare tax increases.

Currently, the Medicare payroll tax is 2.9% on all wages -- with the worker and his employer each paying 1.45%.

Under the new law, starting in 2013, high-income individuals will pay another 0.9 percentage points -- so their share will total 2.35% of their wages.

A single person making $250,000 would pay an additional $450 a year into Medicare relative to what he pays today, according to calculations by Deloitte.

If he made $1 million, he would pay an additional $7,200.

Couples making $500,000 in wages would pay an additional $2,250. If they made $1 million, they would pay an additional $6,750.

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