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.
Are you hearing the sound of silence or is the market really picking up like the Liberals claim?
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.
What a nightmare this administration is. Figures when I finally get mine, the country goes communist. (:
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...
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!
Better idea just in case, you could camp out.
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.
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.
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..
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.
“..you’re-taxes-won’t-go-up-one-single-dime”
They won’t. They’ll go up a lot more than that.
And how will I know a “provite” if there is one?
I got one....get a 100%LTV and default. Technically not a sale when it is foreclosed.
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?
Of course, that's also what they said about the Alternative Minimum Tax.
What does selling your home have to do with healthcare???????????
If it were me I’d be holding on to that place.
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.
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.
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.
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