Hat tip to Jim Neidner for bringing this important tax information to our attention. It appears once again Obama has broken his famous campaign promise that “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.”
Jim Neidner points out that Obama was wrong, and we are about to be hit with a major tax increase that will clobber the middle class. The housing market crash is far from recovery and punishing Americans with additional sales taxes when they sell their home will only make matter worse.
In a press release sent via Facebook, Neidner explains:
The Cost of selling your home will go up with the New Health Care Bill and many of your elected officials still don’t know this.
3.8% Medicare Tax will impact home sales starting January 2013 (Part of HC Bill) Commonly referred to as the “REAL ESTATE SALES TAX”.
So, this is “change you can believe in”? Under the new health care Bill did you know that all many real estate transactions will be subject to a 3.8% Tax? The bulk of these new taxes don’t kick in until 2013 If you sell your $400,000 home, there will be a $15,200 tax bill due.
This bill looks like it’s set up to beat the retiring generation out of money who often downsize their homes and can slow home sales again. This cost could/will be passed on to the buyer.
GOP.gov has more details on this matter, and clarifies that this is a Medicare tax, not a true “sales tax”:
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.
Either way you slice it – capital gains tax, Medicare tax, sales tax, it doesn’t matter. This new taxation will impact the middle class deeply and is just one more example of Obama breaking his promises to America.