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Senate GOP to slam medicare tax in upcoming debate

By Jay Heflin - 03/23/10 09:28 AM ET

When the Senate begins debate on health reform legislation this afternoon, Republicans are expected to sharply criticize changes made to the Medicare tax. 

The tax applies a 3.8 percent tax on unearned income and adds another .9 percent tax to wages for individuals earning $200,000 and couples earning $250,000. 

The levy is also not indexed for inflation, meaning middle-class taxpayers could be liable for these taxes unless Congress intercedes. 

Republicans are expected to blast the provision because it will raise taxes on investments at a time of economic uncertainty. 

Without changes, the measure will increase taxes on capital gains and dividends from 15 percent to roughly 19 percent. 


  


Source:
http://thehill.com/blogs/on-the-money/domestic-taxes/88499-senate-gop-to-slam-medicare-tax-in-upcoming-debate

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