The Patient Protection and Affordable Care Act, known colloquially as Obamacare, is scheduled to take full effect by the year 2014. Many on the left will laud the legislation's safeguards for health care recipients, but if asked about the tax provisions buried within the 2,000-plus page bill they are quick to change the subject. Why? Because those who have actually read the law – and few have – can plainly see that taxes are set to rise substantially for many hard-working people. One group of professionals who will see completely unjustified tax hikes are individual investors.
On the top of the list is the so-called "Medicare Tax on Investment Income," which will boost the tax rate of long-term profits from the current 15 percent to 20 percent in January 2013. While supposedly this money is placed into the Medicare fund, the reality is that much of these funds will support the establishment of bureaucracy to support the institution of Obamacare into 2014. Compounding the jump in investment charges will be the tax rate on dividends, which will rise to 39.6 percent. Currently, this number is 15 percent for most investors.
Those who may be thinking that these increases aren't the worst-case scenario probably don't know about the Obamacare provision that labels yet another tax as a "contribution." This levy takes away an additional 3.8 percent of income from those who make $200,000 or more per year. It covers every form of net income from investment portfolios, including capital gains profits and dividends.
Investors that want to avoid the punitive taxation measures hidden in the Obamacare law should consider contacting Great Wealth Strategies, a cash flow real estate firm that understands the needs of professional asset holders. Contact one of our service representatives today to learn how you can safeguard your hard-earned income from a spend-happy bureaucracy.