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Health law’s heavy impact (Money Grab: 3.8% Real Estate Sales Tax in Health Care Bill)
The Spokesman-Review ^

Posted on 05/13/2010 3:47:46 AM PDT by quesney

"Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one."

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In the days leading up to the dramatic late-night vote on President Barack Obama’s health plan, Speaker Nancy Pelosi said, “We have to pass the bill so that you can find out what is in it …” Now that ObamaCare has passed, it is slowly dawning on people what the new law means for the country and for Washington state.

ObamaCare sweeps away a host of state regulations and permanently alters our state’s insurance market. From now on, the federal government will manage the health care of all Washingtonians. The 2,700-page law contains a complex web of mandates, directives, price controls, tax increases and subsidies.

Federal officials will now decide what kind of insurance people in Washington must have, what medicines will be covered, what treatments are allowed and which are not. Early reports indicate, however, that President Obama, Vice President Biden, the Cabinet, senior members of Congress and leadership staff are exempt.

The new law falls well short of universal coverage. ObamaCare will leave about 6 percent of Washington residents without coverage. The measure is conservatively expected to cost $2.4 trillion in its first full decade. Thousands of older Washingtonians will lose their Medicare Advantage coverage, and the state’s 120,000 Health Savings Account holders may need to buy new policies or face stiff penalties.

Washington residents will begin paying ObamaCare taxes this year, while most benefits don’t start until 2014. The law includes some 19 new taxes. Here’s a rundown of what Washingtonians can expect in the coming years.

Penalties on individuals. Individuals will pay a yearly penalty of $695, or up to 2.5 percent of their annual income, if they cannot show they have purchased a government-approved health policy.

Penalties on families. Families will pay a yearly penalty of $347 per child, up to $2,250 per family, if parents cannot show they have purchased a government- approved policy.

Penalties on employers. Business owners with more than 50 employees must buy government- acceptable health coverage or pay a yearly penalty of $2,000 per employee if at least one employee receives a tax credit.

Tax on investment income. ObamaCare imposes a 3.8 percent annual tax on investment income of individuals making $200,000 or more and on families making $250,000 or more. The new tax is not indexed to inflation, so more people will fall under it each year. Seniors on fixed incomes and people with IRAs and 401(k) plans will be hit particularly hard.

Tax on “Cadillac” health plans. Starting in 2018, imposes a 40 percent annual tax on health care plans valued at $10,200 for individuals and $27,500 for families.

Medicare tax increase. Requires single people earning $200,000 or more and couples earning $250,000 or more to pay an additional 0.9 percent in Medicare taxes.

Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one.

Tax on medical aid devices. Creates a new 2.9 percent tax on medical aid devices. Certain items intended for personal use are exempt.

Tax on tanning. Imposes a 10 percent tax on services at tanning salons. Business owners will collect the tax from customers and send it to the federal government. This appears to be the first federal sales tax in the United States.

ObamaCare will be enforced by the Internal Revenue Service. The tax agency plans to hire 16,500 new auditors, agents and investigators, and to increase enforcement audits. The IRS can confiscate tax refunds, place liens on property and seek jail time if health-related penalties and taxes are not paid.

President Obama had said people could keep their coverage if they want, yet the Congressional Budget Office estimates that under ObamaCare 8 million to 9 million people will lose their employer-provided coverage.

The ObamaCare law passed over bipartisan opposition in Congress. Republicans say they will run on a “repeal and replace” platform this fall, and Washington has joined 12 other states in a lawsuit challenging the federal government’s power to force state residents to buy a product – insurance – from private companies. The long-term prospects of ObamaCare are unclear. In the meantime, Washingtonians should prepare for major changes in their tax burden.


TOPICS: Business/Economy; Front Page News; Government
KEYWORDS: bfd; bfdcare; enemydomestic; islaminside; obamacare; sociopathinchief; thievesincharge
Unreal.
1 posted on 05/13/2010 3:47:46 AM PDT by quesney
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To: quesney

Gotta love socialism.


2 posted on 05/13/2010 3:52:03 AM PDT by pnh102 (Regarding liberalism, always attribute to malice what you think can be explained by stupidity. - Me)
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To: quesney

bttt


3 posted on 05/13/2010 3:53:43 AM PDT by petercooper (Ignorant Obama Voters: Happy Now?)
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To: quesney

Just now figuring this one out? I wonder how many others have yet to stumble across this “you’re-taxes-won’t-go-up-one-single-dime” tax.


4 posted on 05/13/2010 3:59:13 AM PDT by anniegetyourgun
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To: quesney
Unreal.

Very real and all of this has been known for some time now.

The beneficiaries? The federal government both by taxation and unimpeded growth.

Obama is a disgusting piece of garbage.

5 posted on 05/13/2010 4:00:12 AM PDT by johniegrad
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To: quesney

This needs to be publicized every day by the GOP. It is indeed unreal and will be a real burden for many, many people.


6 posted on 05/13/2010 4:03:51 AM PDT by livius
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To: quesney

Again (and again, and again, etc.).....

the founders of this country took up arms and fought against Britain for much, MUCH LESS than what we have already put up with. I have been forced to come to the conclusion that we must indeed now be a nation of pu$$ies.

What this administration and the DemocRats have done goes far beyond mere ‘taxation without representation’. It is out and out treason against the nation and tyranny against all Americans (except Muslims, of course).

The silence from most Americans, except for the occasional Tea party rally, is deafening....while the muffled lamestream media refuses to report anything negative at all about their “”messiah””. It’s absolutely surreal.


7 posted on 05/13/2010 4:08:00 AM PDT by XenaLee (The only good commie is a dead commie.)
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To: quesney

The original article was published on March 28, 2010. Not exactly “breaking news.”


8 posted on 05/13/2010 4:14:25 AM PDT by Labyrinthos
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To: pnh102

More like serfdom. You have to pay the king to leave his tax farm.


9 posted on 05/13/2010 4:14:46 AM PDT by Leisler
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To: quesney
Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one.

My understanding this is only on capital gains on over 250k. (bad enough but still...) Anyone know if this is the case or if it is ANY real estate transaction?

10 posted on 05/13/2010 4:19:30 AM PDT by riri
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To: Labyrinthos

“The original article was published on March 28, 2010. Not exactly “breaking news.”

I’m guessing it’s breaking news to most of the people who read this, including me. The media has been absolutely CRIMINAL in not reporting this before the bill was passed and, in most cases, since then.


11 posted on 05/13/2010 4:25:50 AM PDT by quesney
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To: quesney

The only things people need to know is any federal version of Obamacare is unconstitutional since Article 1 Section 8 does not specifically grant Congress the power to regulate health care! The people are not bound to comply with any unconstitutional act. The people are the government, not Congress, not the White House and not SCOTUS! They operate only at the consent of the governed! The people do not consent to having this unconstitutional socialism shoved down their throats!


12 posted on 05/13/2010 4:26:23 AM PDT by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: riri

Today is starts at 250,000 but like all taxes the will drop the rate down to any home sale where there is a provite. Just wait for the money grab.


13 posted on 05/13/2010 4:26:51 AM PDT by ncfool (The new USSA - United Socialst States of AmeriKa. Welcome to Obummers world.)
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To: quesney

March 28, 2010 is breaking news?


14 posted on 05/13/2010 4:28:03 AM PDT by NautiNurse (ObamaCare uses Bernie Madoff theory of economics)
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To: ncfool
I am not defending it in any fashion but just wanted to make certain.

It'll kill retirees. What is now the incentive to pay off a house? Your best bet is to cash out any equity and die before the payment comes due.

15 posted on 05/13/2010 4:28:55 AM PDT by riri
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To: anniegetyourgun
I wonder how many others have yet to stumble across this “you’re-taxes-won’t-go-up-one-single-dime” tax.

You can tell a lot of lies in 2800 pages.

16 posted on 05/13/2010 4:30:17 AM PDT by tacticalogic ("Oh bother!" said Pooh, as he chambered his last round.)
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To: riri
Anyone know if this is the case or if it is ANY real estate transaction?

Assuming you are married, for the tax to apply, you would have to make over $250,000 and your gain on the sale of your primary residence would need to be greater than $500,000. You'd pay 3.8% on any amount greater than $500k.

My understanding is that there is not a $500,000 credit on the sale of homes that are not your primary residence.

In the sale of your primary residence, this will apply to virtually no one. This is essentially an extra tax on those who own second homes or rental properties.

17 posted on 05/13/2010 4:31:23 AM PDT by Publius Valerius
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To: NautiNurse

“March 28, 2010 is breaking news?”

see comment above


18 posted on 05/13/2010 4:36:38 AM PDT by quesney
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To: Publius Valerius
Do you know in the case of 2nd homes or rental residences, is the tax on the gain or on the transaction itself?

I am trying to sell a second home now.

19 posted on 05/13/2010 4:37:29 AM PDT by riri
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To: quesney

Who thinks Republicans will actually repeal this disaster???


20 posted on 05/13/2010 4:40:36 AM PDT by screaminsunshine (S)
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To: riri

Are you hearing the sound of silence or is the market really picking up like the Liberals claim?


21 posted on 05/13/2010 4:42:42 AM PDT by screaminsunshine (S)
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To: riri

My understanding is that the tax is on the gain, but, of course, you have to make over the income threshhold.

For example, if you are single and making $175,000 a year and sell a second home for $100,000 profit, you owe nothing. If you are single making $225,000 and sell your second home for $100,000 profit, you’ll pay $3800 in addition to any other capital gains tax you might pay.

And I am not a tax professional and this is not tax advice.


22 posted on 05/13/2010 4:43:11 AM PDT by Publius Valerius
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To: Publius Valerius
LOL, I understand. It looks like it doesn't kick in until 2013 so I may skate under this. But, making a gain in this atmosphere would be lucky anyhow.

What a nightmare this administration is. Figures when I finally get mine, the country goes communist. (:

23 posted on 05/13/2010 4:48:21 AM PDT by riri
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To: screaminsunshine
Are you hearing the sound of silence or is the market really picking up like the Liberals claim?

Silence but it is a really odd property for just the right person. Actually, I should be holding on to it because it is ideal for what is coming down the pike. 20 acres in extremely rural southern Colorado, strong well, more deer come through it on any given day than you could count...

24 posted on 05/13/2010 4:50:54 AM PDT by riri
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To: Publius Valerius; riri

With the housing market the way it is, this is affect MANY people! I have several friends who have moved from heavily taxed-areas like Michigan and Oregon to Texas, but have been unable to sell their first home due to the market.

So now, they have a “second” home, simply because they can’t sell the dang thing. But, I think this is criminal - it is basically a tax strictly on property investors! Surely this too is unconstitutional!


25 posted on 05/13/2010 4:54:17 AM PDT by ExTxMarine (Hey Congress: Go Conservative or Go Home!)
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To: riri

Better idea just in case, you could camp out.


26 posted on 05/13/2010 4:54:40 AM PDT by screaminsunshine (S)
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To: riri

It looks like you pay the 3.8% if your capital gain on the sale is over $250,000 for an individual, or $500,000 for a couple. I’m more than a little concerned because I’m in the process of selling my parents home. Split between my sister and I we are probably looking at around $230,000 combined. We are far from “rich.” This bastard will stop at nothing to destroy America.


27 posted on 05/13/2010 4:57:10 AM PDT by RU88
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To: quesney
The media has been absolutely CRIMINAL in not reporting this before the bill was passed and, in most cases, since then.

I'm no fan of the MSM. However, the real current news story relates to the CBO releasing revised health care cost estimates this week.

I stand by my original post.

28 posted on 05/13/2010 4:57:58 AM PDT by NautiNurse (ObamaCare uses Bernie Madoff theory of economics)
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To: anniegetyourgun

thats right they won’t go up 1 single dime....

they will go up hundreds and thousands of dollars....people need to learn to read between the lines.....lol..


29 posted on 05/13/2010 4:58:04 AM PDT by tatsinfla
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To: quesney

The industry will adjust.

Simply put, a bridge loan will be used to absorb any revenues made from the sale. Immediately prior to, concurrently or consecutively, the purchase of another home will consummate. Hence no revenues. The closing attorneys will make more now. They’ll love it.

But, if you’re selling and not re-investing you will surely have to find another way to avoid the tax.


30 posted on 05/13/2010 4:58:19 AM PDT by Principled (Get the capital back! NRST!)
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To: anniegetyourgun

“..you’re-taxes-won’t-go-up-one-single-dime”

They won’t. They’ll go up a lot more than that.


31 posted on 05/13/2010 5:05:08 AM PDT by pieceofthepuzzle
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To: ncfool

And how will I know a “provite” if there is one?


32 posted on 05/13/2010 5:06:51 AM PDT by RipSawyer (Trying to reason with a leftist is like trying to catch sunshine in a fish net at midnight.)
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To: Principled

I got one....get a 100%LTV and default. Technically not a sale when it is foreclosed.


33 posted on 05/13/2010 5:10:48 AM PDT by Mouton
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To: quesney

The actions of this Congress belie their faith in the “commerce clause”. This tax, coupled with cap & trade’s energy efficiency impost on home sales and requirements for federal inspectors, will kill the real estate industry. That will have the added effect of immobilizing the populace; thus controlling them more efficiently.

When do we start getting Soylent Green?


34 posted on 05/13/2010 5:19:20 AM PDT by NTHockey (Rules of engagement #1: Take no prisoners)
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To: quesney
Snopes says mostly false, that only a small percentage of "high earners" will be affected.

Of course, that's also what they said about the Alternative Minimum Tax.

35 posted on 05/13/2010 6:12:35 AM PDT by E. Pluribus Unum (FYBO: Islam is a religion of peace, and Muslims reserve the right to kill anyone who says otherwise.)
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To: quesney

What does selling your home have to do with healthcare???????????


36 posted on 05/13/2010 7:18:20 AM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
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To: riri

If it were me I’d be holding on to that place.


37 posted on 05/13/2010 7:32:17 AM PDT by painter (No wonder democrats don't mind taxes.THEY DON'T PAY THEM !)
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To: riri

Don’t know about your question, but I’m pretty sure Medicare/Medicaid taxes will be levied on rental property income and investments. More bad news, maybe it’s time to start buying gold coins and bury them in the back yard.


38 posted on 05/13/2010 9:01:45 AM PDT by Red Dog #1
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To: GailA
What does selling your home have to do with healthcare???????????

Absolutely nothing. It wasn't a "healthcare" bill, it was a powergrab bill with a few "health" tidbits thrown in for the sake of appearances. All smoke and mirrors and all for killing the American way of life.

39 posted on 05/13/2010 9:55:29 AM PDT by madison10
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To: madison10

BINGO, so’s the new kerry/liarman cap and trade bill. 60 new agencies, buying cooking stoves for Africa, when they live in stupid huts out side of the cities. Already called Corker and Alexander and put in my 2 cents as Rush was talking about it.


40 posted on 05/13/2010 11:51:24 AM PDT by GailA (obamacare paid for by cuts & taxes on most vulnerable Veterans, retired Military, disabled & Seniors)
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To: quesney
"Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one."

Is for investment homes such as second homes or for a primary resident?

41 posted on 05/13/2010 11:55:19 AM PDT by avacado
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