PAYGO Statute Reveals 2011 Top Rate Of 20% On Capital Gains and 39.6% On Dividends
Soon, President Obama will sign H.J.Res.45 to increase the debt limit by $1.9 trillion and to restore statutory PAYGO. The exceptions to PAYGO totaling $3.157 tr. (using estimates from the President's FY11 budget) reveal what Congress expects to pass later this year:
- extending the Bush tax cuts ($1.865 tr. FY11-FY20) , except for those over $250,000 ($969 b.)
- extending the estate and gift tax as in 2009 ($262 b.)
- indexing the Alternative Minimum Tax ($659 b.) See the tables on pages 152-3.
- lifting the 21% Medicare physician pay cut ($371 b. See Table S-7 on page158)
The 15% top rate on capital gains and dividends for those under $250,000 would be exempt too, but not for those over $250,000. That means the top rate for those over $250,000 would revert to the 2001 20% for capital gains and 39.6% for dividends. OMB estimated keeping the 15% top rate on capital gains would cost $111 b. FY11-FY20, and keeping the $15% top rate on dividends would cost $233 b. Paying for either one seems prohibitively large to me, so, after this year, I'd expect a 20% top rate on capital gains and a 39.6% top rate on dividends.
Bookmark/Search this post with
Working in healthcare at a
Working in healthcare at a private practice which services many Medicare patients, I can say that the healthcare workers, for the most part, are dreading the cuts. Services and tests that used to pay well will, after the cuts, pay less, and the whole healthcare worker substructure which services these patients will be hurt.
According to the WSJ, the cuts are tentatively postponed until September 2010--which is a relief. But that will have costs.
I wonder to what extent the 21% cut to Medicare helps finance the Democrat healthcare reform proposals, which I support.