Quote
Originally posted by: Roulette ManQuote
Originally posted by: fvenis
Medicare tax went from 1.45 % to 2.35 %. Top income tax bracket went from 35 % to 39.6 %, Top income payroll tax went from 37.4 % to 52.2 %. Capital gains tax went from 15 % to 28 %. Estate tax went from 0% to 55 %. A 3.5 % real estate transaction tax was added. These taxes were passed without a single republican vote. Most of these were buried in The Affordable Care Act.
While I'm not a big believer in more taxation, let's take your stuff line by line.
Medicare tax went from 1.45% to 2.35%: Partially true. The ordinary rate is 1.45%. If your earned income is more than $200,000, then there is a .9% net investment income tax assessed on the income above $200,000. Your amount of 2.35 (1.45 + .9) is partially correct.
Top income tax bracket from 35% to 39.6% is correct but it took place in 2013.
Top income payroll tax went from 37.4% to 52.2%: I don't know what this is supposed to be? Self employment taxes plus income taxes?
Capital gains tax go from 15% to 28%. Federal long term capital gains rates go to 20% after $400,000 for individuals and $450,000 for joint filers. There is a 28% long term capital gain rate on collectibles, which would include gold and silver.
Estate tax went from 0% to 55%: In 2010 the estate tax was 0% if you chose to carry over basis. Most estates did not choose to do this. The new estate rate then was 35%. A couple of years ago they raised it to 40%. Even though there is a progressive tax chart, the lifetime exemption takes care of all of the lower brackets, so if you have a taxable estate, it is taxed at a flat rate of 40%.
The 3.5% real estate transaction tax is what I believe to be the 3.8% surtax or net investment income tax. It includes capital gain income, but isn't assessed until it is over $200,000 for individuals and $250,000 for joint filers. Homeowners are still extended the 250,000 or 500,000 Section 121 offset on the sale of a personal residence.
