Another provision hidden in the details of the 2000+ pages of the Patient Protection and Affordable Care Act (PPACA) signed into law by President Obama on March 23, 2010 is now starting to make headlines as economists are increasingly concerned about the possibility of a second recessionary dip because the real estate market is not rebounding. Guess how Pelosi, Reid, and Obama decided they could help cover the cost of their ObamaCare debacle? Starting in 2013 we will be taxes 3.8% on all unearned income. This includes the sale of all forms of real estate and, in fact, any income other than that generated from sources other than employment!
Definition: Unearned income – income derived from sources other than employment, such as interest and dividends from investments, or income from rental property. Also called unearned revenue. opposite of earned income.
See article below.
“I can make a firm pledge. Under my plan, 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,”
President Obama, September 12, 2008
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.
Additional Document: http://www.house.gov/budget_republicans/press/2010/hc-ed-final-7apr10.pdf