Five Obamacares to begin 1/1/13

There are five increases in taxes ahead in the new year thanks to Obamacare. 

First is a surtax of 3.8% on unearned income for those with incomes greater than $250,000.  Without action by Congress and Obama, the top rate on dividends will jump to a high of 43.4% and on capital gains to 23.8%.

Second is to help with the cost Medicare's hospital insurance, a 0.9% increase on individuals making more than $200,000 and couples with income greater than $250,000. 

Manufacturers and importers of certain medical devices will be taxed 2.3%.

Those who itemize deductions this year can claim deductions for medical expenses on what exceeds 7.5% of their income minus exceptions and deductions.  This limit rises to 10% in 2013.  Two years ago Bob and I had medical expenses that we could deduct.  No big health crisis, just tests and insurance and deductible.

Flexible Spending Accounts (FSA) allow people to shelter income from taxes to be used for medical expenses.  Employers set the limits and many are set at $5,000 per year.  Beginning in 2013 the government sets the limit at $2,500.

If you've read this list, you are probably thinking these only effect the very rich.  We have been conditioned to believe earners of more than $250,000/year are millionaires and billionaires.  The truth is they may be your neighbor, your boss, your brother-in-law.  With less to spend or invest, these people will affect our economy.  Believe it or not, the $ of the rich is often spent.  At malls, on trips, at restaurants, at casinos, on line, into charities and on home improvements.

The Daily Caller published 12/12/12 that 18 Democratic senators are calling for a delay in implementation of the tax on medical device manufacturers and importers.  I would hope these pieces can be overturned and not just put off. 

til later