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.
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...