More on Healthcare Tax Increases Kicking in on Jan. 1, 2013 —WSJ Tax Report

Two New Taxes on Net Investment Income and Medicare Will Take Effect on January First

At the Wall Street Journal’s Tax Report, Laura Saunders explains.   The word is out: Two new taxes on the affluent and wealthy will take effect as scheduled next year as a result of the Supreme Court’s decision upholding the health-care overhaul. One is a new 3.8% tax on net investment income, and the other is a 0.9% increase in the Medicare tax on wages and self-employment income. Both levies apply to joint filers with adjusted gross incomes above $250,000 ($200,000 for singles). A recent Wall Street Journal article discussed the basics (Get Ready for the New Investment Tax, June 30), but many questions remain. Here are some answers.  The taxes explicitly effect:

Inflation indexing

Effect on Americans abroad

AMT interaction

Executive compensation

Gray areas

Chance of repeal

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