Obamacare Taxes: The Secret Reason You'll Pay Them Sooner Than You Think

Two new Obamacare taxes are aimed at the rich, but over time, more taxpayers will end up paying them. Find out why you could be vulnerable.

Feb 1, 2014 at 8:15AM

The Patient Protection and Affordable Care Act, also known as Obamacare, has created a lot of controversy, and many taxpayers are especially unhappy with new taxes that Obamacare created on wages and net investment income above certain limits. Even though those taxes are aimed at high-income taxpayers now, there's one little-known aspect of those taxes that will lead more people to pay them over time.

In the following video, Dan Caplinger, The Motley Fool's director of investment planning, explains how the income limits for the 0.9% Medicare surtax and the 3.8% net investment income surtax aren't indexed to inflation. Right now, limits of $200,000 for single filers and $250,000 for joint filers only capture those at the highest income levels. But over time, as inflation raises wages, Obamacare's failure to adjust those limits for inflation will lead to an increasing number of taxpayers having to pay the tax, eventually capturing ordinary middle-class Americans. Dan runs through how the same thing happened with the Alternative Minimum Tax until lawmakers added an inflation-indexing provision last year, and concludes that Obamacare taxes need the same provision in order to avoid snaring millions of unsuspecting taxpayers in the long run.

Don't let Obamacare surprise you
The tax provisions of Obamacare are complex, but you don't have to stay in the dark about how they'll affect you. In only minutes, you can learn the critical facts you need to know in a special free report called "Everything You Need to Know About Obamacare." This free guide contains the key information and money-making advice that every American must know. Please click here to access your free copy.

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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