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new sales tax on real estate regard health care

Discussion in 'Politics, Elections & Legislation' started by three dram, Nov 4, 2010.

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  1. three dram

    three dram TS Member

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    SALES TAX TO GO INTO EFFECT 2013 (PART OF THE HEALTH CARE BILL).

    Under the new health care bill -- did you know that all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 (presumably after Obama's re-election). You can thank Nancy, Harry and Barack and your local Democrat Congressman for this one. If you sell your $400,000 home in 2013, there will be a $15,200 tax. Is this Hope & Change great or what?

    Oh, you weren't aware this was in the Obamacare bill? Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either (result of clandestine midnight voting for huge bills they've never read).

    copied from an investment letter
     
  2. halfmile

    halfmile Well-Known Member

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    Kill the Bill

    HM
     
  3. over/under

    over/under Member

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    You mean they didn't read the bill? Huh isn't that their job? What do they pay their aides to do? Oh that's right why read the bill, Mr Conyers, it only deals w/ 20% of our economy. Phase I done. Time to start phase II. Impeach Hussein.
     
  4. stokinpls

    stokinpls Well-Known Member

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    Gee, what would they do with all of that cash?
     
  5. phirel

    phirel TS Member

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    three dram- Have you confirmed the information you put in your first post?
    I am certainly not a supporter of socialized health care but the best way to change it is with accurate information. Somehow your reference "an investment letter" does not sound too solid.

    Pat Ireland
     
  6. no5shooter

    no5shooter Member

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    I'm as happy as anybody to bitch about this terrible piece of legislation and most especially its authors and then the idiots who voted it into life. Having said that, let's get the facts straight.
    The 3.8% tax applies only to any excess profit above the capital gains threshold of $500,000 per couple or $250,000 per individual - depends on how you file your income tax return. And that's profit, not gross selling price, so a couple downsizing after the kids are gone would have to show a profit over $500,000 before anything happens. Say you bought your home for $25,000 in 1960, you'd have to sell the place for over $525,000 before you had any excess profit. Maybe you get $625,000 for it, that's $100,000 "excess profit," and it would cost $3800 in taxes. I wouldn't enjoy paying that, but it's a lot less than the $23,750 (3.8% of $625,000) this Chicken Little Urban Legend that's going around would have us believe the government wants to collect.
    You think you're going to clear more than $500,000 when you sell? Congratulations. Wish I had your problems.

    Jerry in Oregon
     
  7. BFJ201

    BFJ201 TS Member

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    Good clarification Jerry. Let's get this law killed on the whole truth of how bad it will be for the American people. Not half-truths and lies that got us here to begin with.

    James Allen
     
  8. 870

    870 Well-Known Member

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    At least Jerry doesn't buy into these crazy internet posts.

    It's not a sales tax, and it is not a special tax on real estate. Beside those errors I guess the thread title is ok.

    It's a special medicare tax that applies to certain investment income.
     
  9. halfmile

    halfmile Well-Known Member

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    I some parts of Kommiefornia, a chicken coop is worth half a mil.

    This is like the gun legislation that just creeps in a little bit at a time. Just hold still honey, this will only hurt a little bit.

    You don't think they spent those 2300 pages on just health care, do you?

    Here's another dirty little secret for you (credit to Chuck Norris)

    Dirty secret No. 1 in Obamacare is about the government's coming into homes and usurping parental rights over child care and development.

    It's outlined in sections 440 and 1904 of the House bill (Page 838), under the heading "home visitation programs for families with young children and families expecting children." The programs (provided via grants to states) would educate parents on child behavior and parenting skills.

    The bill says that the government agents, "well-trained and competent staff," would "provide parents with knowledge of age-appropriate child development in cognitive, language, social, emotional, and motor domains ... modeling, consulting, and coaching on parenting practices," and "skills to interact with their child to enhance age-appropriate development."

    Are you kidding me?! With whose parental principles and values? Their own? Certain experts'? From what field and theory of childhood development? As if there are one-size-fits-all parenting techniques! Do we really believe they would contextualize and personalize every form of parenting in their education, or would they merely universally indoctrinate with their own?

    Are we to assume the state's mediators would understand every parent's social or religious core values on parenting? Or would they teach some secular-progressive and religiously neutered version of parental values and wisdom? And if they were to consult and coach those who expect babies, would they ever decide circumstances to be not beneficial for the children and encourage abortions?


    Another one is the fact that abortions will be paid for by your tax dollars.

    And don't worry, there are more.

    Kill the Bill

    HM
     
  10. three dram

    three dram TS Member

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    Pat Ireland

    The Richard Russell , Dow Theory Letter , from California

    I clip and pasted as it was written.

    Sorry,I just thought some one would be aware of it,as I do follow US politics etc,
    BUt that was the first I had heard or read anything about this sales tax.

    We had a mayor in the city of Toronto that put a similar tax on real estate

    sales ,in the city, but he decided not to run for re-election, and new mayor

    states in will be deleted

    as a promise in Political campaign

    three dram
     
  11. Brian in Oregon

    Brian in Oregon Well-Known Member

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    Did anyone REALLY think that "free" health care would actually be free?
     
  12. slowdp

    slowdp TS Member

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    Just another example of the people that do pay for the people that don't. That is worse than getting money back if your earned income tax credit is greater than the amount you paid in!
     
  13. abbielew

    abbielew TS Member

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    Pat Ireland:

    The Tax Facts

    •There is a new 3.8% tax in the bill.
    •It is not a "sales tax" on all real estate transactions.
    •It is a Medicare tax.
    •Many people will not have to pay this tax.
    •It is going to affect so-called "high earners."
    •It is not going affect many people.
    •The tax comes into effect in 2013.
    "High Earners" - Who are they?

    The income requirement for so-called "high earners" are spelled out in the new law: $250,000 for married couples filed jointly, $125,000 for couples filing separately, and $200,000 for all others. If you earn more than these benchmarks, you are a "high earner" and therefor subject to the new 3.8% tax, but what you are taxed on helps further eliminate many people.

    A Tax is a Tax is Tax no matter if it is Sales Tax or Medicare Tax...

    I guess I will not have to worry I am under $200,000.00 Thanks God
     
  14. phirel

    phirel TS Member

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    As Jerry explained, it is a tax on capital gains (profit) if the profit is in excess of $250,000 for an individual and $500,000 for a couple. I am strongly opposed to the tax. But I remain opposed to incorrectly calling it a tax on real estate sales. If you bought a property for $100,000 and sold it for $600,000, you would pay a tax of 3.8% on $100,000. We do not need to distort this bad tax with incorrect comments. It is bad enough as it stands.

    I was considering selling a set of six town homes that I had depreciated down to 0. This tax would hit me hard. After some consideration, I have decided to keep the town homes and raise the rent on the tenants to compensate for the fact that I can't sell them with the profit I seek. Renters will end up paying most of this tax.

    Pat Ireland
     
  15. Dickgshot

    Dickgshot Well-Known Member

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    Everyone over 65 is covered by Medicare. The guy who has a job has to pay into Medicare. The guy who makes his money investing doesn't pay into Medicare, but he's covered anyway. Is that fair?
     
  16. BFJ201

    BFJ201 TS Member

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    Is it fair that today's workers have to pay into a system that is likely to become insolvent or dissolved so it won't be there for them when they turn 65?
     
  17. Gold Medal

    Gold Medal Member

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    The 3.8% real estate tax is explained on Snopes.com.

    Put "3.8% real estate tax" in the---what are you looking for box.

    It has been explained accurately several times on this post in that the tax does NOT apply to everyone.

    Regards.
     
  18. Don Steele

    Don Steele Well-Known Member

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    FIrst...my disclaimer: I'm NEVER going to have to worry about having a "profit" on a real estate transaction that would put me in a category to have to worry about this tax.
    That said..I continue to be dismayed at the CLASS WARFARE tactics of the Obama administration. I don't like the term "excess profit"...who the h*ll gives Obama the right to determine what is "Excess"...???
    This is a bad tax, and I don't care if it's called a "sales" tax..."real estate tax"...or simply the "Obama tax to soak the evil rich".
    This is merely one more thing we didn't find out about because "we had to pass this bill to see what's in it"..Nancy Pelosi.
     
  19. phirel

    phirel TS Member

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    dickgtax- The only reason a guy has a job and pays into medicare is that someone else has invested in the company that employees the guy. The only way to create jobs is to stimulate investments. Taxing investments reduces jobs.

    Pat Ireland
     
  20. halfmile

    halfmile Well-Known Member

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    dickgtax, I have to ask you for a reference on your statement.

    Is there a way you can make money on investments and be exempt from the Social Security Self-employment tax you pay per Schedule SE?

    This tax is in lieu of the SS/Medicare deductions a wage slave pays on their income. And it's more, since there is no employer portion.

    If there is a way, I know a couple people who would be happy for the info.

    HM
     
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