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Missed Fortune – The Five Tax Hikes You Should Have Seen Coming

Posted on | July 15, 2012

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A Lawyer’s Dream

Fox News recently reported that officials have already drafted 13,000 pages of new regulations for the new Obama tax law.

In the article, Fox News reports: “With the Supreme Court giving President Obama’s new health care law a green light, federal and state officials are turning to implementation of the law — a lengthy and massive undertaking still in its early stages, but already costing money and expanding the government.

The Health and Human Services Department “was given a billion dollars implementation money,” Republican Rep. Denny Rehberg of Montana said. “That money is gone already on additional bureaucrats and IT programs, computerization for the implementation.”

Stan Dorn of the Urban Institute said. “”Oh boy, HHS has a huge amount of work to do and the states do, too. There will be new health insurance marketplaces in every state in the country, places you can go online, compare health plans.”

The IRS, Health and Human Services and many other agencies will now write thousands of pages of regulations — an effort well under way.”

While the individual mandate tax gets most of the attention, the Obama health care law actually contains at least 20 new or higher taxes on the American people. These taxes are to be phased over the years 2010 to 2018. In January 2013, there are five major Obama Care taxes that will come into force that will definitely hit your wallet.

The first one is the Obama Medical Device Manufacturing tax. This is a 2.3% tax on the makers of medical devices that will raise the price on every pacemaker, prosthetic limb, stint, operating table, etc. Those increases will be passed on to the health care consumer, meaning each of us.

The second tax is the Obama Care High Medical Bills tax. Right now on your 1040 tax return form, the extent that the cost exceeds 7.5% of your adjusted gross income can be deducted for medical and dental expenses. That will now be raised to a threshold of 10% that hits everyone once again.

The third tax is the Obama Care flexible spending account cap. This new tax will affect nearly 24 million Americans who have a flexible spending account that will now face a federally imposed $2500 cap. Up until now, there has been no federal limit on what people could use their flexible spending account to purchase. This means that parents and families will be impacted when they wish to use their FSA to purchase braces, eyeglasses, or even tuition for their special needs children. All this so the federal government can squeeze an extra $13 billion out of the taxpayers over the next 10 years.

The fourth tax is the Obama Care Surtax on Investment Income. Under the current law, the capital gains tax rate for all Americans rises from 15% to 20% in 2013 while the top dividend rate rises from 15% to 39.6%. The new surtax raises the top capital gains rate to 23.8% and the top dividend rate to 43.4%. This means that those of you who will have capital gains and dividends from your investments will be coughing up $123 billion dollars in tax revenue over then next 10 years.

The fifth tax is the Obama Care Medicare Payroll tax increase. This new tax soaks employers to the tune of $86 billion over the next 10 years. This will not help unemployment one bit.

Is it any wonder that the writers of the Obama Care wrote the biggest tax hits in the bill to take effect after the 2012 election?

Protecting Your Nest Egg From Obama Care

If the prospect of the increasing taxes under the Obama health care law is giving you an uneasy feeling, take heart. There is still time to get your nest egg into a vehicle that offers protection from the tax hikes.

This vehicle has been around for nearly a century and it is perfectly allowable under the IRS Code. But if you have highly appreciable assets that you’re delaying selling in order to put off the capital gains hit, or if your money is in an IRA or 401(k) where it’s tax-deferred, you will be kicking yourself if you delay taking action sooner than later.

Utilizing the correct Missed Fortune strategies will allow you to take the capital gains or the tax liabilities at today’s lower rates and then enjoying tax-free growth from that day forward.

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*Life insurance policies are not investments and, accordingly, should not be purchased as an investment

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