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New Taxes



December 25, 2012 – Comments (3)

I try to keep up with Income Tax matters, but some of the new taxes going into effect for next year have me baffled.  In particular, does anyone know any details about the new 3.6% tax on investment income?  There is little mention of it in the media, and on those rare occasions on which it is mentioned, very little or no explanation is given.  Taxes on dividends are already scheduled to go up, and now a new surtax is to be added besides?  I have already expressed my views on the double taxation of dividends in an earlier post. 

There is also a 2.6% tax on Medical Devices.  How is that supposed to reduce health care costs?

Most frightening of all, there has not yet been a fix to the ATM (alternative minimum tax) for 2012!  That is really going to shock a lot of people!  As I said in another earlier post, the ATM is a monster that needs either a permanent fix or, better yet, complete repeal.

3 Comments – Post Your Own

#1) On December 25, 2012 at 5:24 PM, VExplorer (29.05) wrote:

Can you explain, please, what the issue with ATM? It is most usefull aspect of US taxation I experienced since I started pay taxes here. In my filling it is support savings, investment and prevent overconsumtion.

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#2) On December 25, 2012 at 6:37 PM, edwjm (99.90) wrote:

VEx: here is my original post.  I don't see how it supports savings or investment or prevents overconsumption.  What it does do is punish people from taking legitmate deductions on schedule 'A' on form 1040.

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#3) On December 26, 2012 at 12:26 AM, VExplorer (29.05) wrote:

Edwjm: I'm understanding your point. Probably, you are right about negative effect of ATM on people who have high income and a lot of deductions (small buseness owners as example).

Looks like I just not earn too much and I have not changed my emerging country behaviours. As I spend ~50% of my income after taxes I virtually do not have any deductions: rent - not own, no charity, no university bills, no children yet, no medical bills yet and etc. "European" style ;)

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