http://www.nevadaappeal.com/article/20101219/BUSINESS/101219596The PPACA also carries a historic price tag. The cost of the legislation will add significantly to the tax burden of high net-worth individuals and families. Beginning in 2013, individuals earning more than $200,000 and married couples with wages in excess of $250,000 will pay a Medicare payroll tax of 2.35 percent, up from 1.45 percent. Additionally, high-income taxpayers will pay a 3.8 percent tax on unearned income such as dividends, interest and royalties above the threshold — any income other than that which is derived from a business activity or from tax-exempt sources, such as tax-exempt municipal bond interest, income from certain active partnerships and S corporations. The act also puts a 40 percent excise tax on so-called “Cadillac” health plans and increases the threshold for claiming deductions for unreimbursed medical expenses to 10 percent of AGI, from 7.5 percent (effective January 1, 2013).
The act increases the threshold for claiming itemized deductions for unreimbursed medical to 10 percent of AGI, from 7.5 percent (effective January 1, 2013). This change will have a significant impact, given that the money spent on medical care by senior citizens far outpaces that of younger population groups.