Buried in the new and improved version of Obamacare is provision that would apply the Medicare tax rate to income (interest, dividends, rent, royalties, and passive investment in pass throughs like S corporations and partnerships). This is an anti growth, anti jobs tax hike, one that would worsen the double and triple taxation of investment income, thereby reducing productivity, wages, and employment. Overall, Obamacare would impose a net tax increase of $629 billion over 10 years. With the economy in a pronounced slump, even the most extreme liberal Keynesian would not advocate increasing taxes. And elsewhere our colleague Michael Cannon offers a devastating economic critique of the proposal, citing White House economic advisor Larry Summers, no less, on the folly of it all. But the constitutional question is what concerns me.
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