None of that is on all income; base Medicare is only on labor income, the Medicare surtax is on either (specifically, the lesser of) labor income or net investment income above certain thresholds, and the rest is on “normally taxed” income (but not, e.g., long-term capital gains, or gifts and inheritances—which, even when beyond the enormous exempt quantities, aren't taxed as normal income for the recipient, but to the giver or estate, and in California at a lower combined maximum state and federal rate than normal income tax, 40% federal and no state.)