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.
Gotta love socialism.
bttt
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.
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.
This needs to be publicized every day by the GOP. It is indeed unreal and will be a real burden for many, many people.
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.
The original article was published on March 28, 2010. Not exactly “breaking news.”
More like serfdom. You have to pay the king to leave his tax farm.
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?
“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.
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!
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.
March 28, 2010 is breaking news?
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.
You can tell a lot of lies in 2800 pages.
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.
“March 28, 2010 is breaking news?”
see comment above
I am trying to sell a second home now.
Who thinks Republicans will actually repeal this disaster???
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