I can't wait to see how liberals spin this one.
You see, the IRS has released its new "rules for investment income taxes on capital gains and dividends earned by high-income individuals" that's part of that monstrosity of SUCK called Obamacare.
You remember Obamacare, right? It was the piece of legislation no one bothered to read until it freakin PASSED. Yeah. Well, now America's finding out what's really in it. Awesomesauce.
The 3.8 percent surtax on investment income, meant to help pay for healthcare, goes into effect in 2013. It is the first surtax to be applied to capital gains and dividend income.
The tax affects only individuals with more than $200,000 in modified adjusted gross income (MAGI), and married couples filing jointly with more than $250,000 of MAGI.
This is the "first surtax to be applied to capital gains and dividend income." Yay us, huh? And, in case you can't wrap your brain around the rule above (which is one of many rules contained within 159 pages of new rules), here's a tangible example of how the tax will work:
...the IRS offered an example of a taxpayer filing as a single individual who makes $180,000 in wage income plus $90,000 from investment income. The individual's modified adjusted gross income is $270,000.
The 3.8 percent tax applies to the $70,000, and the individual would pay $2,660 in surtaxes, the IRS said.
This new tax is supposed to raise $317 BILLION over 10 years. And we know how well the government will manage to spend it.
I'll give you a hint: However they damn well please.