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Prepare for new Medicare taxes in 2013

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With President Obama's victory at the polls, it is now abundantly clear that Obamacare is here to stay. So far, we've experienced only the easy parts of the massive health care law, but starting in 2013, the hard parts will begin to take effect. In particular, two additional Medicare taxes will kick in. These tax increases will affect only high-income taxpayers: married couples with adjusted gross incomes over $250,000, and singles with AGIs over $200,000. This is a tiny percentage of the population -- only about 4 percent of all taxpayers earn more than $200,000. However, the one-third of taxpayers who itemize could be affected by the more restrictive limits on deducting medical expenses. Increased Medicare taxes for high-income workers Everyone who works -- whether a business owner or an employee -- is required to pay Social Security and Medicare taxes. Employees pay one-half of these taxes through payroll deductions; the employer must pony up the other half and send the ...