Marriage penatly increases medicare tax 62%

[spidey07]

Yet another marriage penalty tax. The 62% tax increase in medicare would take effect if you make more than 200K (notice that's less than the magic 250 number obama promised) a year single. BUT here's the kick in the teeth, the limit for married is 250K! And it's a straight tax of ALL income.

So let's do the math. Current medicare tax rate is 1.45%. The proposed tax hike is to add .9% to that, that's a 62% increase!. A married couple could get hit right off that bat with an additional $2,250 a year if they make 250k. If they are self employed that number would jump to $4,500 because their rate is double W-2 earners.

Honey, I think we should get a divorce to avoid all these marriage penalties.

http://www.businessweek.com/news/20...ing-medicare-tax-to-fund-health-overhaul.html

 

[bfdd]

Well good thing my step mom settled her court case and doesn't have to work anymore or my parents would of been fucked.

 

[GuitarDaddy]

You suck at math, don't quit your day job

200k limit for each as singles means an unmarried couple making over $250k will pay the medicare tax on up to $400k in income, while the married couple will be capped at $250k. In 99.9% of cases the unmarried couple will pay more medicare tax. The only way the unmarrried couple couple can pay less is in the case where one person makes over $250k and their spouse makes very little.

But please don't let that stop you from spouting as much disinformation as possible to try and further your cause

 

[spidey07]

You suck at math, don't quit your day job

200k limit for each as singles means an unmarried couple making over $250k will pay the medicare tax on up to $400k in income, while the married couple will be capped at $250k. In 99.9% of cases the unmarried couple will pay more medicare tax. The only way the unmarrried couple couple can pay less is in the case where one person makes over $250k and their spouse makes very little.

You can't be serious.

To put it simply an unmarried couple would pay 1.45% tax rate if they both earned under 200K. If both made 199K then both still pay the 1.45 rate. Married only have to make 250K combined until the tax increase kicks in (and it's for all income). 250 < 400. The married couple gets hit with the tax increase well before two singles would.

Let's take an example. Two singles make 150K each, that's 300K. They would pay the normal 1.45% medicare rate (double for self employed) or $4350
Now marry them. 150K each for a total of 300K. Their medicare tax rate would be 2.35% (double for self employed) on all of that 300K or $7050. A difference of $2700 every year. That by definition is a marriage penalty.

 

[JEDIYoda]

I guess this affects all of us highrollers in these forums...muahahahaaaa

 

[spidey07]

I guess this affects all of us highrollers in these forums...muahahahaaaa

And all those people in CA and upper east coast...muaahahahahah!

 

[highland145]

And all those people in CA and upper east coast...muaahahahahah!

The Cali's are already enjoying an extra 10% state tax. What's a little more for the Uncle. Or is that Pedro?

 

[Carmen813]

God, I wish my wife and I made enough money to be able to complain about this.

 

[woolfe9999]

We should probably wait and see what is in the final bill, if there will be a medicare tax increase, and if so, how it is structured. If it does go through in this form, I'm going to be pissed. I've had enough of the inequities in the existing tax structure that penalizes married people.

- wolf

 

[EagleKeeper]

God, I wish my wife and I made enough money to be able to complain about this.

Have some patience - soon you will.

The income may not get there, but the tax level will drop to accommodate you

 

[JS80]

The Cali's are already enjoying an extra 10% state tax. What's a little more for the Uncle. Or is that Pedro?

For Jose and Shiquita.

 

[spidey07]

Have some patience - soon you will.

The income may not get there, but the tax level will drop to accommodate you

Alright tax man, did I get my math right? Doesn't medicare HI tax ALL income flat, same as SS/OADI but without the HCE limit?

 

[EagleKeeper]

Alright tax man, did I get my math right? Doesn't medicare HI tax ALL income flat, same as SS/OADI but without the HCE limit?

Let me work/research on it and I will put my $0.02+ in afterwards

 

[highland145]

For Jose and Shiquita.

I thought that was Chiquita?

 

[Jhhnn]

Cuttin' into your inheritance, Spidey?

Fringewhack wannabbees whine about taxes they'll never pay, because they'll never make that much money...

The vast, vast, vast majority of retirees would be thrilled to death to pay that tax on that income. Only those whose sense of entitlement is enormous would complain in the slightest.

Imagine the world's smallest violin, playing just for you...

 

[palehorse]

Cuttin' into your inheritance, Spidey?

Fringewhack wannabbees whine about taxes they'll never pay, because they'll never make that much money...

The vast, vast, vast majority of retirees would be thrilled to death to pay that tax on that income. Only those whose sense of entitlement is enormous would complain in the slightest.

Imagine the world's smallest violin, playing just for you...

It's not so much the increase in Medicare taxes that is the issue here -- although that f'n sucks too -- it's the fact that it hits married couples harder than two singles making the exact same combined income.

Which part of "marriage penalty" confuses you?

 

[Jhhnn]

"Hits", Palehorse? I doubt it'll cause any affected seniors to give up their country club memberships. Those who were smart enough and lucky enough to get where they are undoubtedly don't spend everything, anyway.

Tell you what- just raise the rates for single seniors in that income bracket to make it more equitable, OK?

 

[Zebo]

Have some patience - soon you will.

The income may not get there, but the tax level will drop to accommodate you

hehe

 

[palehorse]

"Hits", Palehorse? I doubt it'll cause any affected seniors to give up their country club memberships. Those who were smart enough and lucky enough to get where they are undoubtedly don't spend everything, anyway.

Tell you what- just raise the rates for single seniors in that income bracket to make it more equitable, OK?

umm, ok. But your friends in congress are not doing that, hence the word "penalty."

also, why do you keep mentioning "seniors"?

btw, hate and jealosy are eating you up.

 

[spidey07]

Cuttin' into your inheritance, Spidey?

Fringewhack wannabbees whine about taxes they'll never pay, because they'll never make that much money...

The vast, vast, vast majority of retirees would be thrilled to death to pay that tax on that income. Only those whose sense of entitlement is enormous would complain in the slightest.

Imagine the world's smallest violin, playing just for you...

This WILL impact me and my future wife and it pisses me off. I'm getting married in a few months. That extra 2500 in taxes would be a nice vacation, that 2500 could pay our gas/electric bill for the entire year.

 

[shira]

You can't be serious.

To put it simply an unmarried couple would pay 1.45% tax rate if they both earned under 200K. If both made 199K then both still pay the 1.45 rate. Married only have to make 250K combined until the tax increase kicks in (and it's for all income). 250 < 400. The married couple gets hit with the tax increase well before two singles would.

Let's take an example. Two singles make 150K each, that's 300K. They would pay the normal 1.45% medicare rate (double for self employed) or $4350
Now marry them. 150K each for a total of 300K. Their medicare tax rate would be 2.35% (double for self employed) on all of that 300K or $7050. A difference of $2700 every year. That by definition is a marriage penalty.

I haven't even read the legislation, and I GUARANTEE that the part I've bolded is utter nonsense. I'm 100% certain the increased medicare rate would apply ONLY to the income above the $250,000 threshold. Which means the tax for the couple in your example would increase by .009*$50k = $450.

You are a math retard.

 

[theeedude]

I think Medicare should be funded out of income taxes, and separate payroll taxes scrapped and rolled into income tax rates.

 

[spidey07]

I haven't even read the legislation, and I GUARANTEE that the part I've bolded is utter nonsense. I'm 100% certain the increased medicare rate would apply ONLY to the income above the $250,000 threshold. Which means the tax for the couple in your example would increase by .009*$50k = $450.

You are a math retard.

There is NOTHING they have said or has been reported that would make that so. Only that the rate would be increased for those who are over the threshold meaning you are taxed at a different rate. Medicare isn't a progressive tax and you're suggesting that it is.

 

[Corn]

I haven't even read the legislation, and I GUARANTEE that the part I've bolded is utter nonsense. I'm 100% certain the increased medicare rate would apply ONLY to the income above the $250,000 threshold. Which means the tax for the couple in your example would increase by .009*$50k = $450.

You are a math retard.

Only a moron would GUARANTEE something they've admitted they know absolutely nothing about. Well done.

 

[Genx87]

Only a moron would GUARANTEE something they've admitted they know absolutely nothing about. Well done.

Haha I was just thinking the same thing.