Paying for the Overhaul – Higher Medicare Taxes for some
by admin ~ May 5th, 2010. Filed under: Blog.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 1.45%. Under the law passed by Congress and signed by the President, beginning in 2013, employees will have to pay an additional 0.9% tax on the amount of wages over $200,000 for individuals and $250,000 for couples.