"The PPACA creates a new Code Section 1411, which will generally impose a 3.8 percent tax on the lesser of "net investment income" or the excess of modified adjusted gross income over a "threshold amount" (generally, $250,000 for taxpayers filing a joint return, $125,000 for married taxpayers filing a separate return and $200,000 in all other cases). Net investment income generally means the excess of (i) interest, dividends, annuities, royalties, rents, income from passive activities, income from trading financial instruments and commodities, and gain from the disposition of certain non-business property, over (ii) allowable deductions properly allocable to such income. In determining the amount of net investment income, special rules apply with respect to dispositions of equity interests in certain partnerships and S corporations, and to distributions from certain qualified plans. This additional tax applies to taxable years beginning after December 31, 2012"
A lot of people have been talking, emailing, and warning each other about this part of the health care reform bill that passed seemingly, unnoticed. Today, I was "informed" via email that this was a "ploy to steal billions from unsuspecting homeowners". It is commonly explained as a sales tax but that is not correct, the best way to describe it would be a tax on profit. Basically, if you sell your home for a profit of more than $250,000.00 you will be required to pay a tax of 3.8%. The amount is $500,000.00 for couples selling a home. In reality, only a small percentage of Americans will be affected by this. The question then is, do you think it is right to be penalized for making a high profit.
Personally, I know that this tax will never apply to me however, I am able to look past myself and do believe that it is wrong. Based on the idea that no one should have to owe the government for making a large profit on their $400,000.00 home. However, this is not a perfect world and America is in a financial crisis. I do believe that compromises have to be made for sure and yes, certainly it is easy to say that those in the upper class should pay more than anyone else simply because, they can. Last time I checked though, they already do. So how far are we as a people willing to let that go? This was not something that was "snuck in", the America people have not had the "wool pulled over their eyes" by President Obama, this was open to the public and could have been discovered and researched by all. The problem is, no one thinks of that. No one cares until they are unhappy with something that effects them and then they decide to depict and study things. If even then, most of the time people never research things on their own, they simply hear about it from one of their friends and react how they are told based on the half-facts they were given. I'm sure we have all been guilty of that at one time or another, myself included.
I believe the majority of America needs to wake up and stop complaining about things after the fact. Actually research a candidate, bill, or issue for yourself before forming an opinion or making a decision, or God forbid, voting.
These are confusing times and we can't make decisions based on what we have been taught or what sounds good on the surface.
Learn about the Health Care Reform Bill:
http://www.healthreform.gov/index1.html
http://www.healthcare.gov/
Read the President's budget for the 2012 fiscal year:
http://www.whitehouse.gov/omb/budget/
"Top 10 Pros and Cons" of the Health Care Reform Bill:
http://healthcarereform.procon.org/view.resource.php?resourceID=003725
The Patient Protection and Affordable Care Act:
http://ppaca.com/
Quote taken from the "Boulder Real Estate Blog" (http://www.boulder-buzz.com/health-care-bill-and-real-estate-tax/). Sources include Eons.com, (http://www.eons.com/groups/topic/2208705-REal-Estate-Sales-Tax?page=1), CNNMoney.com, (http://money.cnn.com/2010/03/22/news/economy/medicare_tax_increase/index.htm), sorry FOX fans... and, Bloomberg (http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=IP:US&sid=a70ouHuhCn5Y).
A lot of people have been talking, emailing, and warning each other about this part of the health care reform bill that passed seemingly, unnoticed. Today, I was "informed" via email that this was a "ploy to steal billions from unsuspecting homeowners". It is commonly explained as a sales tax but that is not correct, the best way to describe it would be a tax on profit. Basically, if you sell your home for a profit of more than $250,000.00 you will be required to pay a tax of 3.8%. The amount is $500,000.00 for couples selling a home. In reality, only a small percentage of Americans will be affected by this. The question then is, do you think it is right to be penalized for making a high profit.
Personally, I know that this tax will never apply to me however, I am able to look past myself and do believe that it is wrong. Based on the idea that no one should have to owe the government for making a large profit on their $400,000.00 home. However, this is not a perfect world and America is in a financial crisis. I do believe that compromises have to be made for sure and yes, certainly it is easy to say that those in the upper class should pay more than anyone else simply because, they can. Last time I checked though, they already do. So how far are we as a people willing to let that go? This was not something that was "snuck in", the America people have not had the "wool pulled over their eyes" by President Obama, this was open to the public and could have been discovered and researched by all. The problem is, no one thinks of that. No one cares until they are unhappy with something that effects them and then they decide to depict and study things. If even then, most of the time people never research things on their own, they simply hear about it from one of their friends and react how they are told based on the half-facts they were given. I'm sure we have all been guilty of that at one time or another, myself included.
I believe the majority of America needs to wake up and stop complaining about things after the fact. Actually research a candidate, bill, or issue for yourself before forming an opinion or making a decision, or God forbid, voting.
These are confusing times and we can't make decisions based on what we have been taught or what sounds good on the surface.
Learn about the Health Care Reform Bill:
http://www.healthreform.gov/index1.html
http://www.healthcare.gov/
Read the President's budget for the 2012 fiscal year:
http://www.whitehouse.gov/omb/budget/
"Top 10 Pros and Cons" of the Health Care Reform Bill:
http://healthcarereform.procon.org/view.resource.php?resourceID=003725
The Patient Protection and Affordable Care Act:
http://ppaca.com/
Quote taken from the "Boulder Real Estate Blog" (http://www.boulder-buzz.com/health-care-bill-and-real-estate-tax/). Sources include Eons.com, (http://www.eons.com/groups/topic/2208705-REal-Estate-Sales-Tax?page=1), CNNMoney.com, (http://money.cnn.com/2010/03/22/news/economy/medicare_tax_increase/index.htm), sorry FOX fans... and, Bloomberg (http://www.bloomberg.com/apps/news?pid=conewsstory&tkr=IP:US&sid=a70ouHuhCn5Y).
No comments:
Post a Comment