Obamacare 3.8 Surtax

Obamacare has gained a lot of controversies since it was first introduced to people, it has a good aimed which is to help and give assistance to some of the people especially those poor citizens. It is a helpful means of paying a less amount in health care, it really offer many benefits. But on the other hand there are still many people who stand against with this law especially big company owners and other large income earners. They have been very affected with this law because they will be the one to get the additional burdens, it is because the money that will be use to pay for the healthcare of some people who signed for Obamacare will be coming from those big businesses who will pay for taxes.

3.8 Surtax Explained

It is known that every businesses or companies that are earning high income is really oblige to pay their taxes, but because of Obamacare law they will increase the income that they are paying to 3.8 % Surtax, this is the first surtax to be applied to capital gains and dividend income. This law begins in 2013; the additional Surtax is a part of the Health Care and Education Reconciliation Act of 2010. This is also known as the ‘’Medicare’’ Surtax because the tax that will be get in this will be used in Medicare assistance of some people.

This law is applying to investment income for those who have an adjusted gross income of $ 200 000 or more and at least $250 000 for those married couples. The calculation of the surtax depends on two components such as, the taxpayer’s net invest income and the modified adjusted gross income. For estates and trust on the other hand, the calculation of the 3.8 Surtax depends also in two components such as an estate or trust’s income and its adjusted gross income.

Those that are considered as investment income are the interest, dividends, passive rental, capital gains, annuity withdrawals, and royalty income. While those that are not considered as investment incomes are, active business income, wages and self employment income, distributions from IRAs, municipal bond interest, life insurance proceeds, life insurance proceeds, and veteran’s benefits. These are the things that you need to know and be aware of if you are still doubtful of the taxes that you will pay.

Paying additional taxes is really truly a burden for individuals, even if somehow there is also a great benefit on the other side there is always a possibility that some may get its negative effect. That is why many are complaining because they think that Obamacare is a law that is not equally made for all the people. As many are gaining free benefits, there are also some who are suffering because they think that they are just the one who will pay for the health care project of the government. There are still many things that are needed to be clarified with this issue, because of many complainers some are still doubtful if Obamacare truly helps or not.

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