Posted on 06/02/2010 1:51:55 PM PDT by cocoapuff
Under the new health care bill - did you know that all real estate transactions are now 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, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Is this “Hope & Change” great or what? We can vote the bums out in November and demand that they eliminate the bill or at the very least defund it. Then in 2012 repeal it.
Can you give a more precise link? Your link goes to the toplevel of the site and I couldn’t find this. I thought the 3.8% was levied on investment income. I guess I could see that extended to capital gains on a home, which for properties held for a long time, could be fairly significant.
“We have to pass the bill before we read it so that we can find out what is in it.” Nancy Strikes Again
Nope. This is a change to increase the capital gains tax rate for sales of home prices above the amount exempt from the cap gains tax. It isn't from the first dollar unless you have a zero cost basis and make a large income. Most home sales probably won't be hit at all.
having difficulty copying article from the spokesman-review roundtable dated march 28, 2008 sunday. the article cites the author paul guppy vice presient research at the washington policy center , a research organization with offices in spokane, seattle, olympia, and tri cities
apparently refers to the capital gain if one is earned
This is a dumb question, cause we’re talking about congress here, but it it indexed to inflation?
Your analysis would only be true in the absence of inflation. While for the moment we are in a mildly deflationary cycle, the only way that the $107 trillion in obligations of the government will be liquidated is through massive inflation. That inflation is probably not far off - perhaps five to seven years. Perhaps not that long...
Of that $107 trillion you quote, $13 trillion is for fixed dollar amount of bonds which we can print up a small stack of billion dollar bills and pay them off (along with the associated hyperinflation). The rest is primarily for Social Security and Medicare which are not fixed dollar amounts. Print up those billion dollar bills to inflate away the current debt and suddenly the average doctor's bill is in the millions of dollars for an office visit and the future obligations are in the quadrillions or quintillions of dollars instead of "mere" trillions.
Can you imagine being the first business asked to make change for the first billion dollar bill?
They are determined to get it all, one way or another.
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