We realize it’s just beginning. I have no idea how our elected representatives voted for this.

The Medicare tax on housing sales is enough to start a GOP landslide in the Nov 2012 election. The Dems are not only pushing granny off a cliff, they’re cranking up the bulldozer and pushing her house on top of her. My guess is that when Dems realize the short-term political harm this tax will bring upon them, they will repeal it.

wouldn’t the 3.8% tax be on your “profit” on the home, that which is above and beyond the purchase price? It’s still pernicious, but if it acts like capital gains, if you made a $25,000 profit on a home you’d pay $950. And, I believe the way the code used to be is if you reinvested that money in a new home you aren’t liable for that tax. . . I could be wrong though. I’m an accountant, but I don’t really ever deal with taxes.

As you say, the tax is on unearned income is $11400, if you sold your $300000 house after paying it off.

If however you owe $280000, your tax is ‘only’ $760. That is the point of this little jewel of a statute.

This a direct assault on those who are 1) retired and have paid off their mortgage and likely will use the proceeds to move to a smaller place/retirement home and live off the balance 2) forced to sell due to aged parent passing away (this would be in addition to the newly resurrected Death Tax) and 3) People who live a simple life style and work very hard to be debt free.

This is a tax on a lifetime of production.

Seems to fit right in with the 0bamunist program to crush the middle class, wipe out traditional values, and transfer wealth from the producers to the absorbers and his union armies.

Yes, indeed, this will affect every American household, not just ones where you own (and then sell) your home. All those “rich” folks that rent their home or apartment or whatever will have their rents raised to account for the increased tax burden that ObamaCare imposes on property owners. After all, how will the tax be paid for – on the backs of those who rent their living spaces, not by the landlords who can simply raise the rent to cover the tax cost.

Don’t think that one was ever disclosed by Queen Nancy back in the day, eh?

but many many many and many more than one single dime…

the 3.8% tax applies only to incomes (earned or unearned) above $250k and would be after you subtracted the amount you owed on a home (it isn’t a sales tax).

The Realtor.org site linked above is the best explanation I have seen of this monstrosity. It’s certainly misleading for Jack to say that the tax would create a $11,400 burden on the sale of a $300,000 home. This is true under very limited circumstances. Most such sales would not be subject to the tax.

In effect, the tax is on the the lesser of modified AGI or net investment income. The usual threshold amounts referenced by the President are applicable: 125,000 if married but filing separately, 250,000 if filing jointly, and 200,000 if single.

Interesting discussion. Posters on w ww.whitehousevoice.com are talking about this too.

we should break that expense item out to let our tenant see an added $38.00 “ObamaTax” each month .

We do not need to embed another tax.

The 3.8% medicare tax for those earning in excess of $250,000 does not apply to the portion of the gain from the sale of a primary residence that is otherwise excludable from income. The amount excludable from the sale of a primary residence is $500,000 of gain for a married couple. So nobody who sells a house used as the seller’s primary residence for $223k (or even twice that much) can possibly be subject to the 3.8% tax on any portion of the sales price, unless there is something unusual in the seller’s situation that makes the $500,000 gain exclusion inapplicable to that person.

The real scandal is imposing a Medicare tax on non-earned income. Given that the social security/Medicare was designed as a retirement plan, like any other retirement plan, it was designed to be funded by taxes on earned income.

(Of course, the revenue has been irresponsibly spent elsewhere, but that’s a different scandal).

The point is that once you break the link between earned income and social security/Medicare, you’re removing the fig leaf of retirement and just turning it into a massive inter-generational transfer of wealth.

And if we don’t kick out the camel’s nose, we know that the tax is just going to increase over time, just like the income tax.

The only silver lining is that Obama and his Congressional minions have now exposed the fraud rather than keeping it hidden.

As far as the 3.8%, whatever the exemptions are, in terms of home sales, the unearned income would be the capital gain/loss on the sale, which is the selling price minus basis.

But again, it’s the existence of this tax, not the amount, that is the scandal.

So if I’m one of those unfortunates that ended up underwater and I have to sell at a loss, does the government give me 3.8% of my loss as a rebate? I won’t hold my breath. Or just maybe I might have to pay 3.8% of my loss. I’m sure they get me somehow.

Once it is repealed – we will see employment skyrocket. The unemployment rate will drop. The home market will recover slowly as employment improves.

If ObamaCare is left intact – we will have a severe depression. It will get worse.

Pelosi said we have to pass it to see what is in it. well now we are seeing waht is in it. So to all that voted for Obama. How is that hope and change working for you or are you still looking for it.

How ’bout Repeal?

d(^_^)b
http://libertyatstake.blogspot.com/
“Because the Only Good Progressive is a Failed Progressive”

When people find out there’s essentially a new sales tax on their home to pay for such an unpopular program, independents will rush into the arms of the GOP.

I’m amazed this part of the program has gotten so little play, I think it will be a huge problem for Obama in the 2012 election.

I hope campaigns remember all the Democrats that voted for this. And most probably didn’t even know it was in there. Every leftover Dem that voted for Obamacare can now have this 3.8% tax-yoke hung around their neck, If properly advertized, the only Dems that could survive are in poitically stupid NY and Calif (or equivalent). This should assure takeover of Senate with super majority.
Wait, am I kidding myself. That’s right. Wimpy, sappy Republicans don’t have the intestinal fortitude to upset Democrats with political advertising like that. They might make someone upset. Boo hoo.
OK, it sounded like a great idea until regaining my senses.
Nevermind….

Queen Nancy Pelosi’s income increased by 62% last year. That is a 62% increase to $33 million dollars in assets. The artile in the Hill claimed that the increase was due to investments owned by her and her businessman husband. Now I don’t know about any of you reading this column but last year was a pretty tough year in my business. I don’t know exactly what her husband was investing in but boy he most be really, really smart.

Vote every democrat politican out of office and every RINO who acts like one. The primaries are coming soon and let’s start turning the RINOs into private citizens while we still have any of our own property left.

Put a 3.8% Escape Tax on the mobility of the American workforce and potential employers will have to pay more to recruit out-of-towners, facilitate offsite work collaboration through technology, or limit their recruiting to the commute range of their facility.

The out-of-towners won’t be driving in, Obama’s proposed mileage tax will keep them close to home. And if that doesn’t then the dollar a gallon gas tax that he floated through his puppet Dan Akerson at GM will.

So Obama has all bases covered. We might call it economic stagnation, but to Obama it’s equilibrium.

“Under our Constitution, the federal government has delegated, enumerated and thus limited powers. Power is delegated by the founding generation or through subsequent amendment (that makes it legitimate); enumerated in the constitution (that makes it legal); and limited by that enumeration. As the 10th Amendment says, if a power hasn’t been delegated, the federal government doesn’t have it. For 150 years, that design held for the most part. When faced with a welfare bill in 1794, for example, James Madison, the principal author of the Constitution, rose in the House to say that he could find no constitutional authority for the bill. A century later, when Congress passed a similar measure, President Cleveland vetoed it as beyond Congress’ authority. That all changed during the New Deal as both congress and the president sought to expand federal power. When the Supreme court objected, rather than amend the Constitution, Franklin D. Roosevelt tried to pack the court with six additional members. The scheme failed, but the threat worked. Thereafter, the court started reading the Constitution’s General Welfare and Commerce Clauses so broadly that the doctrine of enumerated powers was essentially destroyed—and with it limited government.”
– Roger Pilon
Vice President for Legal Affairs for the Cato Institute
Source: Founders Intended Only Limited Powers, USA Today, Friday, July 21, 1995.

at a minimum we should understand just what happened at the Bilderburg Conference in Switzerland last week when they supposedly greenlighted Rick Perry for the US Presidency and we as a people rapidly losing our sovereignty to elitists like those attendees of the Bilderburg Conference, should be very sure who Rick Perry is fighting for in the comming confrontation with the Socialist/Communists.

It is too late to allow another shape shifter into the Presidency.

For starters the list of the Bilderburg attendees reads like a list of who helped bring on the financial collapse, starting with Bob Rubin, Clinton Treasury Secretary who orchastrated not only the internet bubble but the massive reduction in US and World interest rates in 1996 that created the Dot Com bubble and the subsequent housing bubble that followed. The Community Reinvestment Act that led to the issuing of millions of mortgages to people who could not or would not pay them also is heavily represented in the list of Crony Capitalists who attended this years conference at Bilderburg. CitiBank, Etc.

And if you wonder who esle is reading your emals, you might want to know why all the major software CEOs were also there, Google, FaceBook and all the others. SO much for privacy and freedom of speach.

I hate their lying, deceiving guts. Each and every one of them who voted for this obscenity, especially the ones who knew better than to vote for it, but got handed $ Millions to do so.