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Another Obamacare Surprise — A Real Estate Tax?

By: reddog53 (Diary)  |  September 14th, 2010 at 08:31 PM  | 

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h/t  Canada Free Press

The Democrats in Congress have been caught in another grand theft through Obamacare.

This time, it’s taxing Real Estate transactions —  starting in 2013  there is a 3.8% tax on all real estate sales effective in 2013 according to tax expert Paul Guppy in an article in Spokesman Review entitled “Health Law’s Heavy Impact.”

So the financial experts that were beginning to predict some recovery of the housing market in 2012 might have to reconsider their figures.  Taxing something is the surest way to decrease whatever is being taxed….and also the surest way for people to try to work around the new rule with even more creative transfers of property or payment.  Taking nearly $7,000 from the proceeds of the sale of an ‘average’ house will have an impact on the subsequent purchase by the seller who is now $7,000 poorer — which should drive the prices down on the whole.  In short, this is a terrible idea — and another shot of class warfare, claiming funds from property owners to be used to fund health care for others.

This revelation of a new tax on something completely unrelated to Health Care should stoke the fires for repeal — the legislation must be completely scrapped, not fixed around the edges.

In addition, every Congressman and Senator who voted for this bill without reading it or considering the tentacles that it was wrapping around all aspects of our lives needs to be held to account.

Every Last One of Them Should Be Defeated in November.  Every One.

COMMENTS

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  • crashdamage1957

    Just the amount of PROFIT one realizes from the sale of a home in excess of $500,000 GAIN for couples, or $250,000 for single. So since the ‘average” home that is sold is well below this figure, only people who make over a quarter of a million dollars in profit from selling a very expensive piece of real estate will be affected by this. The tax also only applies to those earning over $250,000 married/ $200k single per year. Personally, I would love to be in a situation that I WOULD be affected by this.

    Here is the Scopes link to read up in this in more detail.
    http://www.snopes.com/politics/taxes/realestate.asp

    People, we really need to vet EVERYTHING that comes from the mouths of the “right” or from talk radio, unless you want to end up sounding just as shrill, foolish and ill -informed as they do.

    • JSobieski

      The result of the tax was that nobody bought new boats, the tax didn’t bring in any money, and the folks who built boats lost their jobs.

      There are plenty of ways wealthy people can get around this tax. They can rent. Then can sell at a price that won’t trigger the tax and engage in side transactions if necessary.

      This is just another stupid obstacle that will result in the employment of accountants and tax attorneys, while dissuading and distracting people who could otherwise be job creators.

      People, we really need to vet EVERYTHING that comes from the mouths of the class warfare left or from the MSM unless you want to end up sounding just as shrill, foolish and ill -informed as they do. The purpose of this tax is to score political points, not to raise revenues or actually help the economy.

      No starving child will be fed as a result of this tax. Numerous accountants will have lunch with their clients as a result of this tax.

      • crashdamage1957

        You make a good point that also occurred to me; i cant see how this tax is really going to result in much revenue being raised, so perhaps it is more political posturing than sound accounting . Then again, i really haven’t delved into it much and I really don’t know about the numbers involved. While it may not affect a great number of home sales, the dollar volume might indeed account for some meaningful revenue.

        • JSobieski

          This tax is a total loser and waste of time. It will also be a disincentive for rich people to move around.

  • jstjoan

    rebuttal to the article by Paul Guppy that says this is a 3.8% Medicare tax on unearned income. No that I’m happy abou this little nuggetr in Ocare but this explanation seems to make sense to me:

    http://www.luxuryhomesnorthwest.com/3-8_tax_on_real_estate/

  • usadying

    Just rich people. The dems continue the push for class warfare. Net rental income will also be subject to the tax.

    http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_health_ref_med_tax.pdf/$FILE/government_affairs_health_ref_med_tax.pdf