Re July 14 letter by Stephen Cornelius, “Costs hidden in health care bill alarming”
As the editor noted, the 3.8 percent is payable on the profit of the sale in excess of $250,000 if single, or $500,000 if married. If you are widowed or divorced during the year of the sale, check with an accountant. If you are in the high income bracket, the 3.8 percent is applied to the profit on the house modified by the deduction, or the sum of your modified profit plus taxable income in excess of $200 or $250,000, whichever is less.
Regarding Medicare health insurance premiums, no one has said they’d be frozen at the 2013 rate. With 30 million more people in the system, they’ll probably go up.
Other tax increases are 1) if you itemize and have medical deductions, the amount you subtract rises from 7.5 percent to 10 percent. That amounts to a 2.5 percent increase in taxable income. 2) The reinstitution of the “marriage tax” but I don’t know how much that will be.
Digital Access for only $0.99
For the most comprehensive local coverage, subscribe today.
The stealth tax increases due to manufacturers having to pay them on various items such as health equipment, say a wheelchair, will be passed on to the consumer by higher costs, which if covered by insurance, will be passed on by higher premiums, which in turn results in higher deductions and possible medical item exclusions. It’s sort of a circle with teeth.
Whether they are considered as taxes, or increased payments, it’s going to hurt some more than others.
The writer lives in Conway.