Hidden in the Obama Healthcare plan is a 3.8 percent tax on real estate, rental income, interest, dividend, royalties and annuities.
The nonpartisan staff of the congressional Joint Committee on Taxation estimated the Medicare tax on investments would generate more than $30 billion annually, or $210.2 billion from 2013 through 2019. It would be the biggest tax increase in the bill and account for half of the $409 billion in total revenue.
Interesting that this was only disclosed after the massive bill was passed by the Democrat controlled Congress.
Now, the argument will be that it only applies to those who earn more than $200,000 annually or $250,000 for joint filers…and what’s the harm in that …after all…they can afford it. right? WRONG!!
Actually, the impact is more likely to be felt by those who RENT their home rather than own as the landlord will need to raise the rent or those who BUILD homes because less will be needed and possibly those who REPAIR homes because less will be needed and by those who SELL luxury homes, like me, your lonely real estate broker scribe here in Miami.
But don’t cry for me or worry, I’ll be fine. However, as always, the unintended consequences of government taxation will take a toll on those who can least afford it. The effect will be similar to the increases in the minimum wage, in that, the lowest skilled often lose their employment or are not hired.
It doesn’t take effect until 2013, right after the next Presidential election, (HOW CONVENIENT IS THAT), so we’re got a few years to get ready.
For more information on Miami Oceanfront Condos for Sale, visit www.MiamiCondoLifestyle.com or call 305-321-7043.