For those interested, Bloomberg.com provides a nice summary of the new Obama Health Care Program.
Of interest to investors: a new 3.8% tax on investment income.
"No one who makes less than $250,000 will see their taxes increase." -- President Obama
Does the 3.8% applies to all of us or just to those who make more than $250,000? My hunch is that one has to parse the phrasing very, very carefully. The quote says: "makes more." "Makes" means "earns" as in wages or salaries. Obviously, investment income does not fall in that category.
The new 3.8% tax on investment income most likely applies to everyone.
Happy Tuesday to everyone.
Update: September 2, 2010 -- I have to chuckle. When I first posted this, I honestly did not know that the 3.8% was going to apply to oil royalties, and thus, I honestly thought this didn't have much to do with the Bakken, except indirectly, as a tax on all income. However, since this was posted, there have been postings all over the worldwide web about the 3.8% tax on oil royalties. Funny how things work out.
Health Care posting---what does this have to do with your motto "All Bakken All the Time"
ReplyDeleteThe 3.8% tax on investment income.
ReplyDeleteYup! An added 3.8% tax on investment income will tend to slow investment. Obama carefully parsed his statement to "tax on income" but it leave the opportunity for tax increases that are not strictly income taxes.
ReplyDeleteLengthening depreciation is one ploy. When president Jimmy Carter called, just once, for something like an "working value" tax. In my case, my house is paid in full. The other day i did the math and if I bought it with a market rate 30 year mortgage the principle and interest would run me $1000 per month. That would be a significant increase in income taxes paid withoujt technically raising the income tax rate.
Another more sinister one is the requirement that everyone have a BMI or obesity rating included in their mandatory nationalized health records. Being above the BMI could conceivably be deemed a burden on the health care system so the overweight would pay a "fat surcharge" for Obamacare. Low income people are more likely to be overweight so there could be a means testing for the BMI excess surcharge. There will be some rich and fat people but mostly this will be a "fat tax" on the middle class. If more money is needed they would redefine the BMI surcharge much like the way the EPA redefines "dangerous air" as the air gets cleaner.
Part of it for investors is the uncertainty. You might recall the old land-line phone "surcharges" which were more than a third of the phone bill before I went to IP and cell phones. Those "nickel and dimes" add up.
My http://65y.com blog needs a posting so I will cross post there.
Having said all that, if we could provide coverage for the millions that cannot afford it, but without huge government involvement, that would be ideal.
ReplyDeleteMy heart goes out for those who cannot afford health insurance; I just wish the solution was not govt inefficiencies, waste, and (probably) likelihood of cheating/corruption.