By R. Zebulon Law, Esq. and Christy L. Lewis, Esq.
R. Zebulon Law, A Professional Corp., Costa Mesa, CA
Now that the U.S. Supreme Court has officially upheld the Patient Protection and Affordable Care Act of 2010 (commonly known as “Obamacare”), the implementation of additional taxes will start taking place in the very near future. Most notably, individuals who fail to acquire “qualifying” health insurance coverage will be subject to an additional income tax of 1% in 2014, 2% in 2015, and 2.5% in 2016. Beginning in 2013, individual taxpayers making over $200,000 annually ($250,000 for married individuals who are filing jointly) will be subject to increased Medicare tax rates (2.35%, up from 1.45%) and an “unearned income” healthcare surtax of 3.8% on all interest, dividend, capital gain, and passive business income. These increases, coupled with the threat that Congress will fail to extend the Bush tax cuts, could result in taxpayers paying a 25% tax rate on income that, in 2012, would have been taxed at a rate of only 15%.