by Josh Archambault, Sadat Donkor
Pioneer Institute for Public Policy Research
September 05, 2013
The financing provisions of the Affordable Care Act (ACA), levy 20 new taxes. This report estimates the annual impact of one of these taxes: the law’s additional 0.9 percent Medicare payroll tax – a 62 percent increase – on residents who trigger the new tax by making more than the wage threshold set in the ACA. The additional Medicare tax should be of particular interest to Massachusetts citizens and policymakers because the Commonwealth maintains a higher average income than most other states in the country. As a result, a disproportionate share of the tax revenue raised will come from the wallets of citizens of the Bay State, when compared to other states. It is estimated that every year taxpayers will be sending the federal government in Washington, D.C. an additional $165,550,909 to help finance the ACA due to this one tax.