Health Care Reform Will Bring Higher Taxes
The Health Care Reconciliation bill includes a new 3.8% Medicare tax on investment income, which includes IRA distributions, interest income (including tax exempt), dividends, capital gains, rental income and oil royalties.
Under H.R. 3590, there is also a 1% increase in the employee Medicare tax on all earnings. Taxpayers with income under $100,000 will benefit from partial exemptions.
Congress has promised the two new taxes are temporary (10 years or so)- but don't hold your breath.
So this will increase rents that those of us who rent will be charged? All taxes are ultimately paid by those at the bottom of the heap.
RESPONSE: That's most likely true, at least for high-income landlords.