This didn't really seem relevant to healthcare discussion other than it was slipped through like the student loan changes.


http://www.dailyfinance.com/story/retirement/a-hidden-tax-on-annuities-lurks-in-the-health-care-reform-law/19417917/?icid=main

Quote :

"The Obama administration is trying to encourage people to buy annuities to ensure that they don't outlive their savings. But a little-noticed provision of the new health care reform law will slap a 3.8% tax on payouts from annuities purchased by high-income earners outside their workplace. "

Quote :

"To help pay for the $940 billion health care reform measure, the administration and congressional Democrats included a 3.8% Medicare payroll tax on single people who earn more than $200,000 a year and couples earning over $250,000 a year. Starting in 2013, the tax will be applied to annuity distributions, interest, dividends, capital gains, rents and royalties. While there are no estimates of how much the annuity portion of the tax may raise, all of the investment taxes are expected to contribute $210 billion over the next 10 years to Treasury's coffers. "

Quote :

"Complicating the tax is that while it's fashioned as a tax primarily on annuity payouts from nonqualified plans, income from employer-sponsored plans such as 401(k)s will also be hit. While annuity income on qualified plans above the threshold amounts won't be subject to the 3.8% tax, all annuity income, including income from qualified plans, is considered in calculating income to meet the tax threshold, Dent of the American Council of Life Insurers explains. "

[Edited on March 30, 2010 at 9:54 AM. Reason : .]

3/30/2010 9:50:49 AM

How dare people try to be responsible and plan for thier own retirement. Evil responsible people are ruining what O is trying to do to this country. They must pay.

3/30/2010 12:15:26 PM

Yeah, how are all those people making over $200,000 a year ever going to afford to retire now

3/30/2010 12:27:03 PM

ah yes, the "fuck the successful" attitudes and taxes are surely what's best for this country.

3/30/2010 12:58:19 PM

This was mentioned a couple time in the Healthcare Thread, but didn't garner much of a response. I believe the Medicare payroll tax on earned income was also increased for earnings over the $200K/$250K threshold, about a one percent increase iirc.

3/30/2010 12:58:37 PM

The problem is that these federal laws are made for the entire country, without regard to specific circumstances. For instance, you could have a family in California consisting of a dad, mom, and 4 kids. The dad might be making 200k with the wife staying home, but that's not to go nearly as far as it would here, and he's already paying a shitload of state taxes on it.

3/30/2010 1:16:34 PM

^ The thinking is likely that special circumstances, like children, are already accounted for in the federal tax return. Regional differences in cost of living do not result in differences in tax liability in the case of federal taxes, I would tend to agree with that. My problem is more with the creation of a new tax, almost like a fee, because it is only imposed on earnings over an arbitrary number. New taxes, especially on investment, will slow economic recovery.

3/30/2010 2:11:55 PM

Well, yeah, new taxes are bad for plenty of reasons. I'm just pointing out that taxes and laws should not be made at the federal level. That's the point of having a Republic. It disperses power. Just look at Samoa. They ended up having to adhere to the minimum wage, which is 7.25 an hour, whereas before workers were getting paid 3 dollars an hour (not a bad wage in Samoa). The idiots in Washington thought, "Sweet, this means Samoans will be rich!" What actually happened is the tuna canning factory shut down and moved to Georgia.

3/30/2010 2:44:23 PM

I just like how they snuck in a provision that the President, Congress, etc, get a brand new healthcare plan instead of the one that they passed for the public

It used to be "you can have the same healthcare that the United States Congress has"

now its "fuck you, theres no way in hell any of us politicians are gonna be caught dead on this shitty plan, so we'll just write into the bill a new plan just for us...suckers!"

3/30/2010 4:39:56 PM

Quote :

"Yeah, how are all those people making over $200,000 a year ever going to afford to retire now "

this argument is SO not the fucking point and those of you who make it should be absolutely ashamed of yourselves.

3/30/2010 5:41:04 PM

*Sigh* This bill just keeps getting better.

3/30/2010 5:52:40 PM

You can make an argument for progressive taxation or that the rich need to pay more capital gains tax on unearned income from sitting on their asses. Either way this money should not be used to fund the new healthcare bill. My biggest problem with this bill is that it makes no attempt to make people accountable or to spread the burden onto all tax-payers as it should. Given the regressive benefits of this bill you would think, the healthcare bill would be paid for by a flat tax given to all individuals. For example the social security tax is a flat % for all income tax brackets, then capped at $90,000 (at least the last time i checked). Instead though the financing is coming exclusively from taxes slapped onto the upper echelons of society who will likely never see any benefit from the healthcare reform. An argument can be made for progressive taxes that the rich have a greater utility for spending such as defense, infrastructure, etc. This is not the case though for many of the benefits created from the new legislation.

3/30/2010 6:22:18 PM

ok, so I know that when you increase taxes on the top echelon of people that they will scheme out of having to pay most of that if they can or they will just leave the country. they are not going to get the expected 1.whatever trillion from the rich in increase taxes. so whats going to happen, it will come from the middle class and from the small companies across the country.

the large companies are forming LTD and conglomerates so that they have to pay less taxes and they are still going to move out of country because it is getting worse.

WHY THE FUCK IS OBAMA TRYING TO EMULATE THE FRENCH's BEAUROCRATIC WAYS!!!!

their shit doesnt work. we are not using our strengths to bounce back.
and anyone who has an IRA is going to get taxed even more on it because of this health care.



did i forget that its unconstitutional and states are taking the federal government to court over forcing citizens to pay for health care. the fact is, states are going to have to raise taxes to pay for this mandatory thing.



http://www.foxbusiness.com/story/personal-finance/financial-planning/health-care-act-gives-roth-conversions-big-boost/

3/31/2010 10:46:02 AM

And again..congress and their top staffers are exempt from this wonderful plan..why?

3/31/2010 10:47:28 AM

but why is it that they keep raising the amount of money they receive and their retirements get better. Oh yea, the earmarks that are in every bill like the bailout and in this health care act.........earmarks........


Even though I think McCain isnt too bad and has some good ideas, I enjoyed a response that a man had during a town hall meeting with McCain.

In short, he asked why all congress people were staying in for so long.

I am sorry but they dont need to be in for 20 years and die in congress like strom. There should be a cap on how much you can make, how long you can stay in, and I dont care if you are so experienced.......teach the young guys like an intern and let their new minds work this new world/new economy. We have too much corruption and too many selfish/greedy people in the political spectrum. Lobbyists at one time were there to make sure that the people they worked for had their voice heard and that the facts were there and fair. Now it is simply a way companies buy seats in congress and the white house.

oh yea, i never forget who helped Obama get into office in Illinios. Dont think he doesnt owe them something.

3/31/2010 10:55:45 AM