Value Microcaps Motherboard

[abh3vt]

It looks like this tax would only apply to unearned income over 200k (250k for couples):

http://www.taxpolicycenter.org/numbers/Content/PDF/T10-0080.pdf

Proposal would impose an additional 0.9% tax on earnings as defined for purposes of the Hospital Insurance Tax plus
a 2.9% tax on investment income. Investment income would include taxable interest, dividends, net positive capital gains, net positive income from estates and trusts,
net positive income from rents, net positive income from royalties, and net positive passive income from partnerships and S corporations. Tax would be imposed on the excess of earnings plus investment income above $200,000 ($250,000 for married couples filing a joint return). Tax would be allocated based on the taxpayer's
shares of total earnings and investment income. The threshold would not be indexed for inflation.

---------------

What I don't see here is a differentiation of long term vs short term gains. ST cap gains are already being taxed as ordinary income, so if this tax also applies to this as well, it will push ST cap gains into one of the higher taxed sources of income.

Also, it appears that the tax would be on the excess of income over certain floors.....so its impact is mitigated for the vast majority of US taxpayers.