Fairfax, VA (PRWEB) April 5, 2010
The health care bill is now law. As a result, taxes are rising. Many middle-class working and retired Americans will soon incur greater expenses for services they have already been receiving. Acclaimed financial advisor, author and talk show host Ric Edelman reveals the new taxes imposed by the health care law in his latest special report, available online at RicEdelman.com.
“As a humanitarian, I don’t believe anybody can argue with the principle of providing health insurance to 32 million Americans who have not had access to it. But those benefits have a high cost, and hard-working (and retired) Americans will be the ones paying for it,” says Edelman.
Highlights of the new taxes that the 2010 health care law has created:
- Medicare payroll taxes will rise 62% for higher-earning households beginning in 2013. Over the next decade, federal funding of Medicare will be cut by $500 billion, forcing the states to make up the shortfall by raising local taxes or curtailing benefits to American retirees.
- A new 3.8% Medicare tax on gross investment income (interest, dividends, capital gains, rental income, annuities and royalties) for higher-earning households. In addition to this new tax, capital gains taxes are set to rise in 2011 from 15% to 20% — a 33% increase.
- Health insurance plans that cost more than $10,200 for individuals ($27,500 per family) will pay a new 40% tax on any coverage that exceeds the limit.
- For anyone without insurance, a new tax of 1% of household income. This tax will rise to 2.5% per year (at least $695 per person) by 2016.
- Flexible Spending Accounts will be capped at $2,500 per year. Flex Spending and Health Savings Accounts may no longer be used to pay for over-the-counter drugs.
- Pharmaceutical manufacturers will collectively pay a new excise tax, starting at $2.5 billion and rising over time, the cost of which will no doubt be passed on to consumers.
For the complete list, including information on when each tax will be phased in over the next few years, download the special report at http://www.RicEdelman.com. Despite the tax increases and political acrimony, Edelman points out that the resilience of the American economy should not be questioned: The week that health care reform was signed into law, the Dow Jones Industrial Average* rose more than 100 points, The World Trade Organization announced that it expects global economic trade to grow 9.5% this year, and the National Association of Business Economics predicted that the economy will grow more than 3% this year and next, and that businesses will add 100,000 jobs a month by year-end.
“So, yes, life is getting harder, but that doesn’t mean we should give up. We have choices. We can choose to be optimistic rather than pessimistic, to believe in America, in the American way of life and in the American economy. We can be confident in our financial futures by making wise choices and seeking advice to sort through the confusion,” says Edelman, “The American dream lives. And you can still make yours a reality.”
Download the complete special report on Health Care Reform at http://www.RicEdelman.com
For interviews and commentary on personal finance from Ric Edelman, contact:
Will Casserly at 703-231-0110
Ric Edelman has been providing financial advice to consumers for more than 20 years. He was ranked as the nation’s No. 1 independent financial advisor by Barron’s† in 2009. Ric is the best-selling author of seven books on personal finance, including the classic, The Truth About Money, the award-winning The Lies About Money and his latest, Rescue Your Money. He is also host of The Ric Edelman Show, heard weekly on radio stations nationwide. To learn more about personal finance, visit the education section of Ric’s web site at RicEdelman.com.
Edelman Financial Services LLC provides financial planning and investment management services for individuals and families across the country. The firm has won more than 70 financial, business, community and philanthropic awards, and currently manages $4.5 billion for consumers nationwide.
Ric Edelman is Chairman and CEO of Edelman Financial Services LLC. Ric is an Investment Advisor Representative and offers advisory services through EFS, an SEC registered investment advisor. He is also a Registered Principal of and offers securities through Sanders Morris Harris Inc., an affiliated broker/dealer, member FINRA/SIPC. The opinions expressed herein are those of the writer and may not reflect those of Sanders Morris Harris Inc. or any of its affiliates. The information herein has been obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness. Neither the information or any opinion expressed constitutes a solicitation to buy or sell any security. This information is not intended for tax planning purposes and no one connected with Sanders Morris Harris Inc. can ensure the tax consequences of any transaction. Please be sure to consult with your tax professional.
*An Index is a portfolio of specific securities (common examples are the S&P, DJIA, NASDAQ), the performance of which is often used as a benchmark in judging the relative performance of certain asset classes. Indexes are unmanaged portfolios and investors cannot invest directly in an Index. Past performance does not guarantee future results.
†Barron’s ranking “Top 100 Independent Financial Advisors” (Aug. 31, 2009) based on assets under management, revenues the advisors generate for their firms, and the quality of their practices.