The Other Tax Increase on Saving

10 Pages Posted: 19 Feb 2013

See all articles by Alan D. Viard

Alan D. Viard

American Enterprise Institute

Date Written: 2013

Abstract

In this article, I discuss the enactment, structure, and economic implications of the UIMC. Despite its statutory name, the income to which the UIMC applies is not unearned and the tax is not a contribution to Medicare. Contrary to the bizarre myth circulating on the Internet, the UIMC is not a 3.8 percent tax on home sales. The UIMC falls on households with ample ability to pay, but it has the undesirable effect of discouraging saving.

Suggested Citation

Viard, Alan D., The Other Tax Increase on Saving (2013). Tax Notes, Vol. 138, No. 7, 2013, Available at SSRN: https://ssrn.com/abstract=2218675

Alan D. Viard (Contact Author)

American Enterprise Institute ( email )

1150 17th Street, N.W.
Washington, DC 20036
United States
(202) 419-5202 (Phone)
(202) 862-7177 (Fax)

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