Things I did not know (Part 5,985,876)
by digby
Now we know why the skinflint rich hate Obamacare:
Most Americans pay more in payroll taxes – which finance Social Security and Medicare – than they do in income taxes. The rich are different.
Mitt and Ann Romney paid virtually no payroll taxes in 2011, because nearly all their income came from investments on which payroll tax was not owed.
For most taxpayers, the 2.9 percent Medicare tax levied on wage income will be the same next year as it was in 2011. But starting in 2013, high-income taxpayers will pay more – and in the Romneys’ case – much more.
Married taxpayers with income over $250,000 will pay a 3.8 percent Medicare tax rate on income over that amount, and all income will be covered, including the capital gains that make up most of the Romneys’ income.
If their 2013 income were unchanged from this year, their Medicare tax bill would exceed $500,000.
That tax was passed as part of the health care bill enacted by Congress and signed by President Obama in 2010 – a law known as “Obamacare.” Mr. Romney has pledged to seek repeal of that law.
Let’s lift the cap on social security too,while we’re at it. After all, if a man is so rich that he he can earn many millions while running for president — so many millions that he was able to “over-contribute” as a PR stunt, then he can easily afford to put more money into the safety net. In fact, he won’t even feel it.
Oh, and also. This seems to be a good time to clear up the confusion about Rafalca the dressage horse. Like may others, I erroneously said the other day that the Romney’s got a $77,000 deduction for the horse. That’s wrong. As this thorough Forbes piece spells out, they haven’t actually gotten it yet. It’s a deferred deduction. This deferral is very complicated. I don’t think it will be something you’ll find on Turbo Tax as an option to pay for your quilting hobby, but wealthy people like the Romney’s have high paid tax lawyers to do that for them.
.