Affordable Care Act tax bill

By J. Saunders Wiggins, CFP®, AIF®

J. Saunders Wiggins, CFP®, AIF®

J. Saunders Wiggins, CFP®, AIF® CEO/President

As the 2014 tax season is coming to a conclusion, we’re getting a first glimpse of how much revenue the Affordable Care Act (ACA), or ObamaCare, is generating for the government.  The IRS has released data for the first year that the Medicare surcharge tax and net investment income tax applied, which was for the 2013 tax year, filed and paid in 2014.  According to this Wall Street Journal article, 2.8 million taxpayers paid $6.5 billion in additional Medicare tax, an average of $2,300 per taxpayer subject to the tax.  With regards to the net investment income tax, 3.1 million taxpayers paid $16.5 billion, or $5,300 on average.

The total, $23 billion, is $3 billion more than the government expected to generate.

— Topics: Tax Strategy