Financial ramification on the economySince most of the tax increases don’t kick in until 2013, and most of the mandates don’t kick in until 2016, I don’t see doom and gloom on the economy. I believe that we’re on the front of a massive global expansion. Health care spending is obviously a decision that our elected officials have made; this may cost businesses, but that can always be adjusted in the wages paid to workers (in other words, you get health care instead of more pay). Capitalism is resilient.

Financial ramification on taxesThe Bill increases taxes on households with income over $250,000. The first big increase is that in 2013, the Medicare tax rate for the over-$250,000 household goes from 1.45 percent to 2.35 percent. A 3.8 percent Medicare tax will be introduced for the over $250,000 on investment income. For 2011, the capital gains rates are expected to rise to 20 percent on households with AGI over $250,000. Add in the Medicare tax, and you have an effective rate of 23.8 percent on long term capital gains in 2013.

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