Obamacare Will Add 3.8% Tax on Income from Home Sales and RentalsSubmitted by indpr on Thu, 10/14/2010 - 00:21
In a shock development which will further depress the housing market, it has been revealed that health care reform will add a 3.8% tax on income from home sales and home rentals as part of the extra tax on “unearned income” specified in the health care bill.
The extra tax will come into effect in 2013 and is calculated by imposing the tax on “unearned income” above a certain threshold which will include income from any source for which the recipient is not directly working.
This includes interest received on a savings account, dividends from stocks, rental income, social security income, unemployment checks, child support, and income from home sales.
This tax is supposed to target the well-off sector of the population with a threshold of $250,000 in unearned income, but it could just as easily hit middle-class income families who sell a house in that price range — even if they only have the “money for a day.”
Furthermore, the tax is not indexed to inflation which means that year by year more and more people will become included under its provisions.
The tax is amongst 19 other new taxes which will result from the “healthcare revolution.”
According to a review published earlier this year, the additional taxes and penalties will shortly be implemented:
- 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.
- 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.
- 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.
- Starting in 2018, the bill will impose a 40 percent annual tax on health care plans valued at $10,200 for individuals and $27,500 for families.
- The bill will require single people earning $200,000 or more and couples earning $250,000 or more to pay an additional 0.9 percent in Medicare taxes.
- The bill also creates a new 2.9 percent tax on medical aid devices.
- The bill also 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.
The taxation regime will be enforced by 16,500 new auditors, agents, and investigators attached to the Internal Revenue Service.
The program is clearly designed to punish what has been designated as “the haves” and redistribute income to the “have nots.”