While the debate over the fiscal cliff swirls in Washington, D.C., many Americans may be unaware of a tax that is scheduled to go into effect January 1 as part of the health-care law. Known as the unearned income Medicare contribution tax, the tax imposes a 3.8 percent levy on interest, dividends, capital gains and passive business income received by taxpayers exceeding $200,000 (or $250,000 for couples). However, the proceeds will be paid into the general treasury and has no financial link to Medicare, says Alan D. Viard of the American Enterprise Institute.

Read the story.