If a penny saved is a penny earned, what is a dollar invested? Taxed, if the taxpayer falls under the new Medicare tax on investment income scheduled to take effect in 2013. Under § 1411 of the Internal Revenue Code, a new tax of 3.8% is imposed on net investment income of certain individuals, trusts, [...]

In order to pay for the healthcare overhaul, tax increases include raising the rate of the Medicare insurance tax imposed on wages for individuals making more than $200,000 and couples making more than $250,000 per year. Under current law, the 2.9% Medicare payroll tax is split evenly between the employer and employee with each paying [...]