~ Where the Sun Will Never Set on Our liberty ~
The Affordable Healthcare Act, otherwise known as Obamacare, has a hidden provision. That may not be new news, as much is still unknown about the bill that legislators passed without so much as reading it through.
The provision has nothing to do with healthcare, but involves real estate instead. Profits on the sale of real estate are taxed at 3.8%. My realtor wanted me to know this, hence the notice, just in case I missed the fine print in two thousand pages of the Obamacare bill.
What this means is that Uncle Sam will have his hand out, collecting tax on the home you sold for more than you paid when you bought it. For example, you might have bought your house for $200,000 and sold it for $300,000. The first thing I would say is lucky you. Having a house in the first place is pretty good news. Selling at a profit is unheard of these days.
The housing market is so dead in the U.S. that any house that sells at a profit is doing well. Pricetags on sold houses these days measure 45 percent down from asking price in many locations. The poor souls who take such a hit obviously prefer to cut their losses as a better bargain than getting nothing at all or facing foreclosure.
To continue our example, of the $100,000 gain you made on the sale of your house, the government gets $3,800. This is not pocket change for the family that made that house their home. And, it is a substantial payoff to a government that played no role in building, buying, improving, or selling the house, despite President Obama's claims that "you didn't build that."
This hidden real estate tax in Obamacare strikes me as another disingenuous method for drying up the American Dream. What does such a tax do for our healthcare? Well, it pays for the healthcare you may want but not get because it paid for somebody else's instead. It redistributed your home sale profits so somebody else could see a doctor for free. It makes no sense and is unfair. And I don't understand the line of entitlement, when somebody else benefits when I sell my house.
The 3.8% tax on real estate to fund Obamacare is government run amok. Obama is in the pockets of regular people, nickel and diming every transaction Americans make in their daily lives and imbibing big dollars on sales that produced profit. It's stealing, plain and simple.
We have installed a thief in the White House. He takes from Americans and calls it 'care' preceded by his name. He funds Obamacare, in part, from sales of the American Dream - their homes. What other "affordable" surprises can we expect to find in Obamacare?
Most of us prefer to put off paying taxes for as long as legally possible. This year, though, some taxpayers could save money by cashing in some of their taxable investments.
Starting in 2013, high-income taxpayers will pay a 3.8% surtax on unearned income, including interest, dividends, royalties, rents and capital gains, as part of the health care reform law. The tax will affect taxpayers with modified adjusted gross income of $200,000 if they're single, or $250,000 for married joint filers.
And that's not the only tax hike coming. Starting in 2013, taxpayers will pay an additional 0.9% Medicare tax on income from wages over $200,000 ($250,000 for married couples). Also, unreimbursed medical expenses will have to exceed 10% of AGI before you can deduct them, up from 7.5% now. (For taxpayers 65 and older, the threshold remains 7.5% through 2016.)
But the surtax is the main worry for investors -- especially when you also consider the possible expiration of the Bush-era tax cuts. If Congress fails to extend them, the top rate on long-term capital gains will rise to 20%, and the top rate for dividends will jump to 39.6%. Add in the surtax and high earners are facing rates of 23.8% on long-term capital gains and 43.4% on dividends. We believe Congress will extend the tax cuts. But even if that happens, the surtax alone will boost top rates for long-term capital gains and dividends to 18.8%.
Good post Molle! I only knew this because I was one of those that researched this bill way back when. I can't wait for those that voted for him, and don't know about this tax on home sales, go to sell their houses. I'd like to be a fly on their wall. :)
Yeah, we probably researched it at the same time, same site. But I missed this little tidbit! Oh, and there is so much more to come but nobody will believed it then and they still don't believe it!
You're right JG. They won't believe it came from Obamacare.
I think we did Molle. :) So much ugly in that bill. Ugh!