Real Estate tax added to Healthcare bill?

[Scott]

Got this in an email...before I believe it...has anyone else heard of this?
Figured I'd throw it out to the SW Snopers.
Does anyone know of the legitemacy of this email:

Could be totally BS for all I know...you know how the internet is.


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Subject: REAL ESTATE SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)
Another Obama Nightmare
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it?
That's $3,800 on a $100,000 home etc.
When did this happen? It's in the healthcare bill. Just thought you should know.
SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)
REAL ESTATE SALES TAX
So, this is "change you can believe in"?
Under the new health care bill - did you know that all real estate transactions will be subject to a 3.8% Sales Tax? The bulk of these new taxes don't kick in until 2013 (presumably after obama's re-election). You can thank Nancy, Harry and Barack and your local Democrat Congressman for this one. If you sell your $400,000 home, there will be a $15,200 tax. This bill is set to screw the retiring generation who often downsize their homes. Is this Hope & Change great or what? Does this stuff makes your November and 2012 votes more important?

Oh, you weren't aware this was in the obamacare bill? Guess what, you aren't alone. There are more than a few members of Congress that aren't aware of it either (result of clandestine midnight voting for huge bills they've never read). AND, there are a few other surprises lurking.
People have the right to know the truth because an election is coming in November!

 

[milehighassassin]

For the most part it is false
http://www.factcheck.org/2010/04/a-38-percent-sales-tax-on-your-home/

IF you make more than $200k per year AND sell a house worth more than $250k or $500k if you are married you will pay a tax. If you do not meet BOTH of those criteria, no you do not pay a tax.

Even if you do meet both requirements, more than likely you won't pay the FULL tax on the entire house:

So there you have it. The sort of people who would have to pay the tax might include, for example:

• A single executive making $210,000 a year who sells his $300,000 ski condo for a $50,000 profit. His tax on the sale of that vacation home would amount to $1,900, in addition to the capital gains tax he would have paid anyway.
• An "empty nester" couple with combined income of over $250,000 a year who sell their $1 million primary residence to move to smaller quarters. If they cleared $600,000 on the sale, they would be taxed on $100,000 of the profit (the amount over the half-million-dollar exclusion). Their health care tax on the sale would amount to $3,800 over and above the usual capital gains levy.

So it is basically on the amount of profit.

The above examples have some key items left out, in the first example it is the "executives" non-primary home. I think if it is his primary home, no tax is paid. In the second example, "empty nester" is a term used to explain a couple or person who chooses not to own a house (rent). If they do own a house and sell it, they will pay this tax on the "profit" only, IF they make more than $250k and sell their house worth more than $500k. In that case they only pay a tax on the profit margin. If they owe $450k on it, they would pay a tax on $50k.

 

[go high fast]

here's some other information worth knowing about the healthcare bill call PPACA which stands for Patient Protection and Affordability Care Act.


The effective date of PPACA was last Thursday September 23rd and will immediately impact most benefit plans in the following way.

• Preventive Care – the new health care reform laws generally require health care plans to cover certain preventive services including mammograms and colonoscopies without charging a deductible, co pay or coinsurance unless specifically allowed by law
• Elimination of Lifetime Policy Limits - insured plans will no longer be able to include lifetime limits on essential benefits in their policies. Insurers may still impose lifetime limits on “nonessential benefits.” The government has yet to issue an exact definition of what benefits will be considered essential benefits
• Elimination of Annual Limits on “Essential Benefits” - plans will be limited in their ability to decrease annual limits in their policies for “essential benefits”
• Children Allowed to Stay on their Parents’ Health Care Plan Until Age 26 - the new health care reform laws establish a national standard for allowing children to stay on their parents’ health care plan.
• No Preexisting Condition Exclusion for Children Under Age 19 - insurers cannot impose a pre-existing condition exclusion on coverage of children under 19 years of age.
• Appeal of Health Plan Decisions – the new healthcare reform laws require the establishment of a claims and appeals process that includes external review.
• Grandfather Status – plans who retain Grandfather status are not immediately subject to some of the Preventive mandates and Review/Appeal mandates. Grandfather Status is lost should employer groups:
o change of coverage options
o change of employer premium contributions
o increase in the medical plan co-insurance rate
o increase the medical plan deductible or maximum out of pocket amounts by more than medical inflation plus 15%. For instance assuming medical inflation of 5% if your plan deductible is $1,000 you would be unable to increase it by more than $200



Future implications of PPACA

o Employer mandated coverage - with $2,000 penalty per employee per year for those employers who do not offer coverage in 2014
o Individual mandated coverage - individuals will have to purchase health insurance or risk being fined in 2014
o Cadillac Tax – 40% excise tax will apply to premium amounts of over $10,200 (annual I believe) for a single policy in 2018
o Premium subsidies and Tax Credits – assistance from the federal government in the form of tax credits to help pay for insurance for those under 400% of the federal poverty level in 2014
o Increases access to Medicaid – Medicaid will be expanded to 133% of the poverty level which is expected to add 100,000 people in Montana in 2014
o You Cannot Be Denied Insurance – an insurer has to accept anyone who applies for coverage
o Montana Health Benefit Exchange – PPACA provides funds to all states to develop and establish an internet based e-commerce website through which individuals and employers can purchase insurance in 2014
o Flex Plans not as flexible with the maximum annual contribution being reduced to $2,500 in 2013


How much will it cost

I'm not clear on the real estate tax and it’s unclear at this time how much impact these requirements will have on health insurance premiums but please note the following:

o The package of benefits and mandates incorporated into the new health care reform laws is estimated to cost $938 billion over a decade. But because of higher taxes and fees and billions of dollars in Medicare payment cuts to providers, the package is estimated to lower the federal budget deficit by $143 billion over 10 years, according to the Congressional Budget Office
o If you have a high income, you may face higher taxes. Starting in 2013, individuals will pay a higher Medicare payroll tax of 2.35 percent for individuals earning more than $200,000 a year and couples earning more than $250,000, up from the current 1.45 percent. Also, you will face an additional 3.8 percent tax on unearned income such as dividends and interest over the $200,000/$250,000 annual income threshold
o Starting in 2018, the law will also impose a 40 percent excise tax on the portion of most employer sponsored health coverage (excluding dental and vision) that exceeds $10,200 a year for individuals and $27,500 for families. The tax is often referred to as a "Cadillac" tax as mentioned above
o The law also will raise the threshold for deducting unreimbursed medical expenses from 7.5 percent of adjusted gross income to 10 percent for those people who itemize their deductions when determining their income taxes
o The law also will limit the amount of money you can put in a flexible spending account to pay medical expenses to $2,500 starting in 2013 as mentioned above. The law also disallows paying for over-the-counter medication with flexible spending account dollars
o Starting in 2010, commercial tanning salons will pay a 10 percent tax


Now if this doesnt enrage you...........something is very very wrong with you.

 

[Scott]

Here is a follow-up that I got later this afternoon.

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Thanks to the two folks who sent me the link to find out the facts about this issue. I copied this article which I was directed to. It clarifies the question.
Thanks, Bruce


Home sales tax clarified

In his recent guest column regarding the impact of the health care bill, Paul Guppy of the Washington Policy Center claimed that a 3.8 percent tax on all home sales was a part of the recently passed legislation. This is inaccurate and needs to be corrected. The truth about the bill is that if you sell your home for a profit above the capital gains threshold of $250,000 per individual or $500,000 per couple then you would be required to pay the additional 3.8 percent tax on any gain realized over this threshold.
Most people who sell their homes will not be impacted by these new regulations. This is not a new tax on every seller, and that correction needs to be made. This tax is aimed at so-called "high earners" - if you do not fall into that category you will not pay any extra taxes upon the sale of your home.
Sara Orrange Government affairs director Spokane Association of Realtors

 

[cwbyup_22]

Gotta love our government they really know what is best for us. Bastages

 

[Chubby]

Did you know too that Muslim's are exempt from paying any costs for the new Insurance because of there religion and they can not be made to buy the mandatory health coverage .

 

[milehighassassin]

Did you know too that Muslim's are exempt from paying any costs for the new Insurance because of there religion and they can not be made to buy the mandatory health coverage .

Have a link or anything? I have not read that in anything I have seen. Granted I have not read the ENTIRE bill.

 

[cwbyup_22]

Did you know too that Muslim's are exempt from paying any costs for the new Insurance because of there religion and they can not be made to buy the mandatory health coverage .

Hmm.... Imagine that. Also starting in 2013 I believe, your employer will be required to put the ammounts of all of your benefits on your W2's and you are going to be taxed on those ammounts as well. Oh Joy

 

[FriscoProx]

All I know is the Health Savings Account and high deductible individual health care policy I currently own, which is perfect for my needs, if I could keep it would make me a criminal in two years, because apparently I won't be subsidizing the system enough.

BTW, in Colorado, a woman having a baby on Medicaid is fully covered by the State from prenatal to having a nurse make once a month house calls to check on the baby\mother for first two years.

 

[POLZIN]

Well I guess its a good thing home values are in the toilet along with existing home sales.

 

[xrated]

All I know is the Health Savings Account and high deductible individual health care policy I currently own, which is perfect for my needs, if I could keep it would make me a criminal in two years, because apparently I won't be subsidizing the system enough.

BTW, in Colorado, a woman having a baby on Medicaid is fully covered by the State from prenatal to having a nurse make once a month house calls to check on the baby\mother for first two years.

And I assume this is supposed to be a bad thing....how?

 

[FriscoProx]

It's a bad thing because other people are paying the bill. Programs like this provide no incentive to get off the gov't dole or not have children they can't afford in the first place. Plus it raises the overall health care costs on the people that pay for services with cash or through private insurance. Gov't programs like Medicaid can statutorily compel private health care providers to provide services for below market value which forces providers to over charge individuals and private insurers to subsidize the difference.

 

[xrated]

It's a bad thing because other people are paying the bill. Programs like this provide no incentive to get off the gov't dole or not have children they can't afford in the first place. Plus it raises the overall health care costs on the people that pay for services with cash or through private insurance. Gov't programs like Medicaid can statutorily compel private health care providers to provide services for below market value which forces providers to over charge individuals and private insurers to subsidize the difference.

So your OK condmening the child to a crappy life full of sickness and falling behind their peers?

That could be the next great right wing hope that is getting a visit from the community health nurse.

 

[FriscoProx]

I said nothing about condemning children... you did. And if one of those poor little bastards turns out to be the great Right hope, keep 'em in Minnesota, you need more of them there.

 

[xrated]

It's a bad thing because other people are paying the bill. Programs like this provide no incentive to get off the gov't dole or not have children they can't afford in the first place. Plus it raises the overall health care costs on the people that pay for services with cash or through private insurance. Gov't programs like Medicaid can statutorily compel private health care providers to provide services for below market value which forces providers to over charge individuals and private insurers to subsidize the difference.

sounds like punishing the kid to me....

 

[ruffryder]

It's a bad thing because other people are paying the bill. Programs like this provide no incentive to get off the gov't dole or not have children they can't afford in the first place. Plus it raises the overall health care costs on the people that pay for services with cash or through private insurance. Gov't programs like Medicaid can statutorily compel private health care providers to provide services for below market value which forces providers to over charge individuals and private insurers to subsidize the difference.

So are you saying that the government should increase taxes so that Medicaid can pay for services at or above market value?

 

[FriscoProx]

If you could read what I wrote and still ask those questions you may be beyond hope. But hang in there, after our all knowing leaders in Gov't fix medicine they'll get right on fixing everything else in your life so you'll be rich and have all your problems taken care of for you.