Now We Know… Obamacare Includes 3.8% Tax On Home Sales For All Americans …Update: Maybe Not

“We Have to Pass the Bill So That You Can Find Out What Is In It”

Remember that line by Speaker Pelosi… It will come back to haunt you repeatedly in the days ahead.

Now that it’s been a few weeks since Democrats rammed Obamacare through Congress we are getting a glimpse of what we can expect. Not only does the law initiate the first federal sales tax in the United States (on tanning) but it also taxes all Americans (and illegals) 3.8% when they sell their home.
The Spokesman Review reported:

In the days leading up to the dramatic late-night vote on President Barack Obama’s health plan, Speaker Nancy Pelosi said, “We have to pass the bill so that you can find out what is in it …” Now that ObamaCare has passed, it is slowly dawning on people what the new law means for the country and for Washington state.

ObamaCare sweeps away a host of state regulations and permanently alters our state’s insurance market. From now on, the federal government will manage the health care of all Washingtonians. The 2,700-page law contains a complex web of mandates, directives, price controls, tax increases and subsidies.

Tax on tanning. 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 new law falls well short of universal coverage. ObamaCare will leave about 6 percent of Washington residents without coverage. The measure is conservatively expected to cost $2.4 trillion in its first full decade. Thousands of older Washingtonians will lose their Medicare Advantage coverage, and the state’s 120,000 Health Savings Account holders may need to buy new policies or face stiff penalties.

Washington residents will begin paying ObamaCare taxes this year, while most benefits don’t start until 2014. The law includes some 19 new taxes. Here’s a rundown of what Washingtonians can expect in the coming years.

Penalties on individuals. 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.

Penalties on families. 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…

Tax on Home Sales. Imposes a 3.8 percent tax on home sales and other real estate transactions. Middle-income people must pay the full tax even if they are “rich” for only one day – the day they sell their house and buy a new one.

Remember that promise by Barack Obama that any Americans making less than $250,000 per year will not see their taxes increase?
You can forget it. It was another empty promise. Just words.

UPDATE: Snopes says not all home sellers will have to pay the 3.8% sales tax.

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  • NeoKong

    If you sell a home worth $300,000 it could cost you almost $12,000.
    That’s not $12,000 on $300,000 profit…..?
    It’s $12,000 regardless of what you made…..?
    Gee….I could sure have sure bought a lot of health care with that money.

  • WW

    The tax a on tanning is as racist as they come. Obama ain’t gonna tan anytime soon! They finally get to tax us white folks onsomething. I tell you it’s racism straight up!

  • bill-tb

    Reparations …

  • Palinfan

    Never mind all the analyzing of this bill. There is one thing you have to remember. Keep the heat on ALL the candidates for November to put in WRITING that they are going to work to REPEAL Obamacare.

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  • squeaky

    in another part of the world =[SEOUL, South Korea — North Korea executed a former senior official last week as punishment for the country’s botched currency reform, a news report said Thursday…….]our legislatures are
    lucky we aren’t as draconian. gross incompetence when failure is hoisted onto the back of joe america.

  • Scott

    In the midst of the worst housing crisis in history, the Feds want a piece of the action….Stupidity beyond all comprehension.

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  • jomojava

    The real GREED in this country eminates from Washington DC.

    There is no other alternative for this load of buffalo bagels than to R-E-P-E-A-L it.

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  • Scott

    So, homeowners who now support the school operating budgets in most districts will now have to support “affordable” healtcare for all…

  • Scott

    The only difference between the US and Greece is that we are a lot bigger and there is not enough money in the world to bail us out…

  • Dr. Hackenbush

    Don’t pay it ! Screw them !

  • squeaky

    those cheering on obama’s policies are those who don’t have any skin in the game. when you
    run out of folks in the $250,000 rank you move down until you have nowhere else to go.
    when people who’ve contributed nothing to
    society but expect to share the fruits of someone elses labor. all the glory without the
    sweat and labor.

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  • olm

    I’m sorry, I’m having a tough time with this little gem.
    I do not intend to move again, until they carry me out but a 3.8% tax on home sales? Where are the realators on this?
    The economy can’t survive the Democrats.

  • toddro

    The bill says this new tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. The fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.) The vast majority of real estate transactions will be exempt from this tax – just in case you wanted to check the facts…

  • Jerry C

    I recently turned 40 and was brought up to believe owning a home was a goal in life. Now, I’m starting to question that assumption. It was my understanding as well that the Revenue Code was only to tax “profit”. Our government is beyond corrupt; it is treasonous.

  • Gini

    May 13th, 2010 | 6:52 am | #18

    You obviously do not live in a urban area. Perhaps your “facts” fit for small suburban cottages, or for ghetto areas, but not for
    co-ops, condos, townhouses, or reasonable sized country houses.

  • Jim,

    This one that you should have looked into a little closer. While it is a real tax it doesn’t apply to all sales. I don’t believe that any additional taxes are good at any time but in this economic climate it is crazy.

    Anyway here is a link to Snopes for a more detailed explanation:

  • Jim Hoft: Obamacare Includes 3.8% Tax On Home Sales For All Americans

    Q: Does the new health care law impose a 3.8 percent tax on profits from selling your home?

    A: No, with very few exceptions.

  • ProLifer

    The American Revolutionary War began near Boston in 1775. We are at war again in 2010, but the enemy is more aggressive than “we the people” are. If it were not for the Tea Party Movement, there would be no resistance at all! We are watching as America fades into history.

    We have a mad dog in the White House — and November is a long way off.

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  • Skinner

    Come on Jim.

    Check tha facts before you post.

    Some of your posts sound like the crazy un-checked chain emails I get from an ex-girlfriend, all breathless and excited with no verification.

    Will you fix your error, or not?


  • Canthisbe

    While the new tax is a further encrochment of the federal government, the tax does not appear to as onerous as the article makes it appear. The tax doe not apply to all real estate transactions and it appears to apply only to profits on sales of homes by “high income individuals” (over $200K for single, etc) on profits over $250K. Thanks to Congress allowing Feddie Mac and Fannie Mae to run amuck, no one will be making a profit on sale of house for next five years..Hopefully by then we will be able to repeal Obama and Obama Care.

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  • Kevin P

    I just got notified from my HR department – that the IRS has instructed them to change my deductions to ZERO and my filing status as SINGLE! Never mind I’m married and have 9 children.

    NEVER been on welfare. NEVER received food stamps. NEVER attended public schools. NEVER been in prison. (I’m talking about generations of my family) All we’ve ever done is pay in! and then – pay in MORE!!!

    This will change my take-home pay by about $500/week! Well guess what?!?!?! We’re on food stamps now! And govt. housing assistance. And EVERYTHING I CAN TAKE FROM THIS DESPOTIC GOVERNMENT!!!!!!!!

    This is a mistake on the IRS part – but will take several weeks to straighten out – and several weeks without the $500/week means we will miss our house payment and other doctor’s bills etc.


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  • Kevin P

    We were planning to see our house too – but now – if they take the 3.8% – it’s not worth it. The govt. will get about 1/2 of what the Real Estate Co. will get – and the govt. doesn’t DO ANYTHING!!!!!

    Is this like “protection” money? D.C. IS the MOB!

  • Kevin P

    sell our house – I can see it anytime I want – sorry I’m ranting but I’m outraged!

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  • seven

    Every stupidmove by the chicom regime has unintended consequences. They can’t tink ahead. Tey raise this big tax. Well, they ca’t collect it because a lot ofhomes change hands by foreclosure. That means they get zero rom the evicted former owner. If they look under the bridge for him, they will sue see he doesn’t have 3.8% on him.

  • Chippy

    How come “We The People” do NOT know the FULL extent of this joke of a bill? How come the facts are just now “trickling” out? How come many esteemed socialist-libs are “feeling” the need to not even attempt to try to get re-elected? How come this administration is thinking about tinkering with this certain aspects of this HC bill so as to make it deficit friendly? The answer is simple. The Socialist/libs and their loyalists know this bill sucks. They know their fall from power is inevitable starting in 2010.

  • Deanna

    May 13th, 2010 | 7:09 am | #21
    You obviously do not live in a urban area. Perhaps your “facts” fit for small suburban cottages, or for ghetto areas, but not for
    co-ops, condos, townhouses, or reasonable sized country houses.
    The tax only applies to people earning over the $250,000 limit and who make a profit of over $250,000. So you’re saying that most of these owners will make that much of a profit on the sale? Maybe bought their house or $400,000 and sell it for over $650,000? Or bought their house for $600,000 and sell it for over $850,000? Good luck with that in this market.

  • Just_Saying

    What the hell does a home sales have to do with health care reform?

  • WorriedAmerican

    Who would of thought Liberals would be the demise of this country! Weak minded fools voting for Obama. There will be riots in the street shortly. Everyone does realize our stock market would of plummeted this past week if it wasnt for the trillion dollars we gave Europe. Obama was on the phone all day Sunday talking to leaders. More national debt! Way to go Obama!

  • Vin

    The democracy will cease to exist when you take away from those who are willing to work and give to those who would not.

    – Thomas Jefferson

  • Kat

    This doesn’t sound like a news column, it sounds like someone’s letter to the opinion pages. Man, what passes for ‘news’ and ‘information’ these days. Get your pants out of a bunch and do something positive for your community if you are so concerned about the way things are. You should have been much more concerned during the Bush years, and I bet you are thinking about voting those neo-cons back into power. Suckers for emotional manipulation. We need people who can critically think about issues, not just be critical.

  • Michael

    This is more re-distribution of wealth. The do-nothing parasites of society are in favor as usual. Forced charity is not compassionate, is not justice, and is not sustainable. Socialism is crumbling before our eyes in Europe and now we’re told we must bail it out! Stop rewarding FAILURE!!

  • Start Small..“This is a complicated section of a complicated piece of legislation..” (and we like our interpretation of it far better, but don’t look for the government to assure you it will never be interpreted this way or used as depicted above.. remember, it’s complicated and at least they will get any of the “evil” rich people with million dollar homes for sure and we all hate them, right? They should be taxed like you would be outraged about, right? Start small.. start small.. like income tax was.. as Jerry C noted, It was my understanding as well that the Revenue Code was only to tax “profit”. Well.. at first.)

  • Kevin P

    Start Small #42 – “It was my understanding as well that the Revenue Code was only to tax “profit”. ”

    A wage is not income. Seriously.

    A wage is an exchange of value for your time. Your time – is your life. What is your life worth? This is not income. Taxing this as “income” is basically taxing you for living.

    Income is monies earned from investments. Dividends, interest, profits – those are income and what was meant when the original “income” tax was proposed. Living is not income.

  • Start Small..

    This is a very large camel with his nose under the tent.. who will soon come all the way in. If you excuse this tax.. both the FIRST FEDERAL SALES TAX EVER IN US HISTORY and the one on HOMES (but “only” on the rich, at first).. all because it applies mainly to “others”.. they will come for you eventually. Is the tax unfair if it applied TO YOU? If so, why let them do it to someone else? Because you hate those evil tanners and owners of bigger homes than you have?

    There is nothing like a good application of the Golden Rule of doing to others what you would wish others to do to you. Would YOU want this tax on YOU? If not.. think about why you let them do this (AT FIRST) to “others” – who are the real racists and hatemongers?

  • Amy

    It looks like some of you are overreacting.
    A.) So, realtors should get their percentage on a home sale, but the government should not?
    B.) The tax on tanning is like a tax on cigarettes, it’s bad for your health and it’s an individual choice. This article is not even coherent.

  • Gahnzo

    Tax on tanning services? Sounds like a racist tax to me.

  • Kevin P

    Start Small #44 – exactly right!

    That’s why my father who grew up broke and (not poor – poor is a mental thing) Democrat until his later years always thought the “graduated” income tax was unfair.

    He knew in his soul that it was unjust and unfair.

  • Kevin P

    Amy #45- are you joking or are you insane???

    “A.) So, realtors should get their percentage on a home sale, but the government should not?”

    The real estate agent PERFORMED A SERVICE!!! The govt. STOLE it.

    Liberalism IS a mental disorder.

  • Gahnzo

    Thank you for your posting.. people check it out, small small percentage of “rich” people will get hit with it. But still, why is being rich so wrong and why are the rich punished? If I were “rich” I doubt I’d live in this country. I’d live somewhere else and keep the profits of my labor. Pretty soon “the rich” will decide to leave the U.S. and live elsewhere. Instead of funding all the pet projects of the Democrats.

  • Kevin P

    Gahnzo #49 – the only safe place to live when you’re rich (or want to become rich) is in the halls of Congress or the White House.

  • PM

    Unfortunately, this article is completely false. Get your facts straight before you publish.

  • iconoclast

    It looks like some of you are overreacting.
    A.) So, realtors should get their percentage on a home sale, but the government should not?
    B.) The tax on tanning is like a tax on cigarettes, it’s bad for your health and it’s an individual choice. This article is not even coherent.

    It sounds like you really don’t get it. I am able to sell my house without paying any realtor (sold by owner). But I must pay the federal government??? And, as others have pointed out, realtors actually perform a useful service (made more useful by dealing with the insane and useless regulations imposed by indifferent bureaucrats).

    As for selecting yet something else to be a sin tax because some sanctimonious twit has decided it is bad for you, does that mean that the first 8 oz of red wine each day is tax free because red wine is good for you?

    Finally, no one seems to realize that inflation will soon push the absolute dollar price of a house well above $500K for many more folks. So even though the real value will drop, the inflated price will ensure that more people are swept up by yet another federal tax. Have a look at alternative minimum tax sometime and how middle class people are abused by that little bit of theft.

    And all to benefit a growing class of government employees, crony capitalists, and entitlements. At what point do these greedy scum kill the goose? Sooner than they think, I believe.

  • Militant Conservative

    May 13th, 2010 | 10:52 am | #45
    Post #45 is correct and it is nobodies business if I tan myself, smoke or like BBQ. Piss off! I am a free man with the “RIGHT” to pursue happiness. ditz.

  • iconoclast

    Unfortunately, this article is completely false. Get your facts straight before you publish.

    For now. But after the inevitable inflation hits, more and more will pay this tax. And all to create a poorer quality health care system in America.

  • WorriedAmerican

    Ummm…you people do realize that OBAMA has spent more money in 15 months than BUSH did in his whole 8 years of Presidency! So dont try to bash BUSH now…you have no room to talk. Our money will be worth nothing in 2 years…watch

  • Colin Laney

    First you get your facts wrong. Then your nitwit readers believe you.

    Don’t worry. They’ll still believe what you write tomorrow. That’s why they’re nitwits.

  • TT Mac

    You people are insane. There’s a point at which what’s good for the individual is BAD for society as a whole. For years that line couldn’t even be seen through all the people crossing it, and now that society is pushing back you’ve turned into whiny, spoiled little brats throwing temper tantrums. Grow up, for pete’s sake, and learn that balance is what’s needed, not republican vs democrat or conservative vs liberal. BALANCE.

    Seriously? A tax on tanning is racist? (Oh, and that’s a use tax, not a sales tax.) Let’s see, a service that demonstrably increases the incidence of skin cancer now actually contributes to its treatment. No, that’s not racist, but YOU are if you believe that tripe.

  • I fear it is too late for talk… Since when has a government ever “down-sized” itself? Never… Repeal is a good idea, but I seriously doubt it happens. We all know where this is really headed… But I will vote in November, and keep praying.


  • Will Libs EVER be Happy?

    TT Mac #57 – “Seriously? A tax on tanning is racist?”

    Ever hear of a thing called satire?

    Liberalism – can’t live with it and you can’t live with it.

  • Patriot Ed

    You mentioned Snopes says not all homeowners will pay the tax. Snopes is operated by a Muslim couple who spread misinformation skewing the truth. Every conservative should beware of them and refuse to quote them or refer to them about anything.

  • Scott

    When you rob Peter to pay Paul, you can always count on the support of Peter…DNC Action Plan!

  • Scott

    3.8% Tax…In addition to the capital gain tax which is going from 15% to 20% this year when the Bush tax cuts expire…

  • Scott

    Why own a home? Why work? Who is John Gault? The democrats are moving quickly to destroy what America was meant to be…

  • Scott

    As George Washington, the Father of our country said, “Government is an indifferent servant and a cruel master.” I’m afraid our young Obama trolls will have decades to learn what our founders were trying to save us from…

  • Anne

    My understanding about Snopes is that it is funded by George Soros.

  • John Thomas

    Fact check is funded and operated by Obama’s campaign. Sell of a home is taxed already under capitol gains if it is not the primary residence. SO now someone selling that home has to pay an additional tax. When the 26th Amendment was proposed, it was only to tax the “rich.” Now everyone pays. If you are naive to believe this will stop at the “rich” you get exactly what you deserve. If you sell your primary home now, regardless of value it is not taxed. Get it through your heads the marxist in the white house (no caps on purpose) wants to abolish private property.

  • Scott

    #57 TT Mac, you said we have turned into spoiled little brats…Tsk Tsk, you democrats really don’t know much about salesmanship…David Axelrod needs to hire better trolls…

  • Charles Newman

    If I’m not mistaken it also places a “medicare” tax on rental income for the first time. No tax increase below 250,000? I knew it was a lie when he said it. Now everybody knows, but some won’t admit that he lied his way into office.

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  • TeaPartyGal

    As to Snopes…it is run by a very nice couple, one of whom is a Canadian citizen, neither are Muslim, and both are committed to fact checking.
    For the rest of it…If I so choose to sit around, tanning, smoking, drinking, and eating nothing but Taco Bell, THAT IS MY RIGHT! Just like all the Obama-minions have the right to stupidity and to follow like lemmings over the cliff.
    That being said, I’m a lower middle class single mom, who gets no state or government support, or child support, and I manage to pay for my health insurance, as well as my son’s. But hey, if you hate your money so much, send it to me. I’d like to go tanning.

  • AuntieMadder

    I don’t know who runs snopes nor do I care. What I do know is that Obummer’s got snopes in his pocket. It’s become another, which is a Soros funded web site. SNOPES CAN NOT BE TRUSTED and should never be used a resource for anything.

  • To: AuntieMadder,

    I agree that Snopes is not the end all to research but I agree with other comments that is definitely a left-wing organization. If you do a search on the Internet you will find many articles that agree with Snopes assessment as well as FactCheck.

  • dave fox

    i like trees.

  • farmboy

    OMG 3.8% tax on all house sales in Obamacare bill! Really? No.
    By Patrick on Thu, May 13th, 2010 at 8:52 am | 1544 views | 5 comments | add comment | email this
    I’ve been getting emails of articles like “Now We Know… Obamacare Includes 3.8% Tax On Home Sales For All Americans”

    Unfortunately for Obama-haters, it’s not true. The typical couple wouldn’t have a $500,000 profit on a house sale, and so would pay zero tax on profits from a house sale. And note it’s a tax on profits in excess of the exclusion amount, and not a tax on the sale price amount.

    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.

    Even Realtors admit that the hype about the 3.8% tax is false:

    Q-9: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply?

    A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.

    And again, that tax is only on profits above $250K or $500K and not on the total sales price.

    There are some good reasons to be annoyed at Obama (like continuing Bush’s occupation of Iraq, and opposing real reform of Wall Street, and pushing higher mortgage debt rather than lower house prices). But this tax on large real estate profits is fair, starts in 2013, and doesn’t even apply to most people. Here’s more:

    So, please, include a little more reality in your Obama-bashing. Otherwise you just look foolish.

  • AuntieMadder

    May 14th, 2010 | 10:14 am | #74

    I stopped reading your comment after “Unfortunately for Obama-haters, it’s not true.”

    What the hell does that mean? Why is it unfortunate for Oblowme detractors? Are you saying that it’s unfortunate that those who don’t pray at the feet of your Obamessiah don’t have to pay more property taxes, that you wish they did even if it meant you did, too? Or did you mean that Oblowme detractors “hate” your idol so much that they’d want to pay more property taxes just to have reason to hate him?

    Either and both reasons that you might believe it’s “unfortunately” not true are stupid. The former means that your hatred of those who don’t fall at the feet of your Obamessiah is so strong that you’d cost yourself more money just to cost them more money. Or, to use an old saying, you’d cut off your nose to spite your face. Only a spiteful idiot would feel that way. The latter is stupid because Ohblowme’s given America dozens of reasons to hate him; we don’t need a higher property tax to pay for his new entitlement program – the biggest and most expensive US entitlement program to date.

    So, I stopped reading your comment there because with that sentence you proved yourself to be just another dumb@$$ troll. Idiot.

  • AuntieMadder

    May 14th, 2010 | 7:07 am | #72

    I’d have to search, going back a year or more, to find the articles/blog posts in which snopes is revealed to be yet another Obummer propoganda machine. Since this comments section is just about dead, however, and since, even after using snopes as a fact-check resource for years prior to that discovery I’ve gotten along fine without it, it hardly seems worth it.

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