Amended by sections 10906 of the Manager’s Amendment and 1402 of HCERA. Increases
the Medicare Hospital Insurance tax rate by 0.9 percentage points on wages in excess of $200,000 ($250,000 for married couples filing jointly and $125,000 for married taxpayers filing separately). Also imposes an additional “Unearned Income Medicare Contribution” tax of 3.8 percent on the lesser of 1) net investment income – such as interest, dividends, annuities, royalties and rents, other than income derived in the ordinary course of a trade or business – for the taxable year; or 2) the modified adjusted gross income for such taxable year that is over a threshold amount. Applies to estates and trusts under parameters also delineated under this section. Generally exempts active partnership interests and S-corporations from the tax except under specified circumstances. Effective for remuneration received and taxable years beginning after December 31, 2012.