Posted on 01/14/2011 9:45:35 AM PST by Signalman
Another provision hidden in the details of the 2000+ pages of the Patient Protection and Affordable Care Act (PPACA) signed into law by President Obama on March 23, 2010 is now starting to make headlines as economists are increasingly concerned about the possibility of a second recessionary dip because the real estate market is not rebounding. Guess how Pelosi, Reid, and Obama decided they could help cover the cost of their ObamaCare debacle? Starting in 2013 we will be taxes 3.8% on all unearned income. This includes the sale of all forms of real estate and, in fact, any income other than that generated from sources other than employment!
Definition: Unearned income – income derived from sources other than employment, such as interest and dividends from investments, or income from rental property. Also called unearned revenue. opposite of earned income.
“I can make a firm pledge. Under my plan, no family making less than $250,000 a year will see any form of tax increase. Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes,” President Obama, September 12, 2008
Beginning January 1, 2013, ObamaCare imposes a 3.8% Medicare tax on unearned income, including the sale of single family homes, townhouses, co-ops, condominiums, and even rental income.
In February 2010, 5.02 million homes were sold, according to the National Association of Realtors. On any given day, the sale of a house, townhome, condominium, co-op, or income from a rental property can push middle-income families over the $250,000 threshold and slam them with a new tax they can’t afford.
This new ObamaCare tax is the first time the government will apply a 3.8 percent tax on unearned income. This new tax on home sales and unearned income and other Medicare taxes raise taxes more than $210 billion to pay for ObamaCare. The National Association of Realtors called this new Medicare tax on unearned income “destructive” and “ill-advised” and warned it would hurt job creation.
Isn’t there an earnings cap on this 3.8%?
I thought if you earned (or unearned) less than 250K this 3.8% wouldn’t kick in....
I will sell my house before this happens. I didn’t make all these improvements just to see it sucked away by another tax!
Imagine inheriting a farm and having to sell it to pay the Obama death tax...would this 3.8% tax on unearned income also apply?
bump
“I thought if you earned (or unearned) less than 250K this 3.8% wouldn’t kick in....”
In general, your are correct:
(1) APPLICATION TO INDIVIDUALS. In the case of an individual, there is hereby imposed (in addition to any other tax imposed by this subtitle) for each taxable year a tax equal to 3.8 percent of the lesser of –
(A) net investment income for such taxable year, or
(B) the excess (if any) of –
(i) the modified adjusted gross income for such taxable year, over
(ii) the threshold amount.”
(The threshold amount in Sec. 1411(a)(1)(B)(ii) 200,000 single, $250,000 married filing separately.)
Note also that:
1) Only *net* investment income and *MGA* income over the exempt amount is taxed.
2) Distributions from qualified plans or IRAs are excluded.
3) Only the income *in excess* of the exempt amount is taxed.
Candidate Obama implored his supporters to “get in the faces” of their GOP and independent neighbors’ faces and tell them they were wrong, Obama would lower, not raise their taxes.
Oh, how I hate that doublespeak Marxist term. My God, that is a lie straight from the pits of Hell.
Guess how Pelosi, Reid, and Obama decided they could help cover the cost of their ObamaCare debacle? Starting in 2013 we will be taxes 3.8% on all unearned income. This includes the sale of all forms of real estate and, in fact, any income other than that generated from sources other than employment!
This looks like low hanging fruit for Republicans to pick and make Democrats vote on,
I guess I’ll have to transfer my savings into my checking account at the end of next year, and make sure my checking account become non-interest-bearing. I do NOT want to pay for 0b0z0care.
” This looks like low hanging fruit for Republicans to pick and make Democrats vote on, “
Assuming Republicans had any “street brains” and they don’t.
Why aren’t they talking about this?!
I don't suppose that would include welfare, would it?
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