Friday, November 20, 2009
I don't understand how a couple of these taxes work.
Is the luxury tax on insurance premiums 40% of the amount that exceeds $8500, or 40% from the first dollar? If the latter that's a monstrous increase in cost to go from $8499/year to $8500/year.
Second, the extra payroll tax on people who earn more income than Obama approves of. Is the trigger for the tax salaries in excess of $200k/$250k or AGI? Who is supposed to withhold it? Right now an employer doesn't have to know anything about your financial picture. If the employer has to withhold it, then they have to start asking intrusive questions about their employee's finances, because the IRS levies serious penalties on employers who don't withhold enough payroll tax.
I'm sure the answer is wahtever figure is larger...plus they will probably pass this bill in mid-year...but make the taxes retroactive to Jan 1st (a la Bill Clinton)...just to screw everybody our a few extra bucks.