With tax provisions set to expire on payroll taxes, capital gains rates, income tax rates, AMT exemptions, estate taxes, and nearly everything else, the tax picture for 2013 is anything but clear.
One thing that we can expect with certainty on January 1, 2013, is the introduction of the 3.8% investment tax under new Internal Revenue Code Section 1411. The new provision adds a 3.8% tax on the “net investment income” of individuals, estates, and trusts with modified adjusted gross income in excess of the threshold amounts of:
$250,000 for joint returns and surviving spouses;
$125,000 for married taxpayers filing separately; and
Judge Henry E. Hudson of the Eastern District of Virginia rules that the Patient Protection and Affordable Care Act, specifically Section 1501, the Minimum Essential Coverage Provision, is unconstitutional. Under the law as passed, the Provision would be enforced through the Internal Revenue Code. The judge ruled that the provision is unconstitutional under the Commerce Clause and General Welfare Clause.