New Year’s Day was tough for taxpayers. Thirteen tax increases kicked in.
The deal that Congress and President Obama struck that finally—but only partially—avoided the fiscal cliff resulted in seven tax increases.
Those hikes combined with six tax increases from Obamacare that also began on New Year’s Day.
13 Tax Increases That Started January 1, 2013
Tax increases the fiscal cliff deal allowed:
1.) Payroll Tax
2.) Top marginal tax rate – increase from 35% to 39.6%
3.) Phase out of personal exemptions
4.) Phase out of itemized deductions
5.) Tax rates on investment
6.) Death tax increase
7.) Taxes on business investment
8.) 3.8% surtax on investment income
9.) 0.9% increase in Hospital Insurance portion of the payroll tax
10.) Medical device tax
11.) Reducing the income tax deduction for individuals’ medical expenses
12.) Elimination of the corporate income tax deduction for expenses related to the Medicare Part D subsidy
13.) Limitation of the corporate income tax deduction to compensation that health insurance companies pay to their executives.
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