97 percent won't pay new taxIn 2013, there is not a new sales tax of 3.8 percent on all home sales. For starters, the 3.8 tax will be imposed only on individuals who earn more than $200,000 yearly income. A figure that currently excludes 97 percent of all U.S. households.
Second, the tax will not be assessed on every house sale, but only on real estate transactions that produce profits over $250,000 for a single return and $500,000 for a joint return. So, if you earn a profit of $250,000 (profit, not sales price) then you would not pay the new 3.8 percent sales tax.
For example, let’s assume that a couple with an income of $325,000 bought a house in 2004 for $300,000 and resold it in 2013 for $800,000, thus producing a $500,000 profit. Since U.S. law allows a couple to exclude from their gross income profits of up to $500,000 from the sale of their principle residence, the taxable gain from this sale in 2013 would be zero, and the couple’s taxable income would still only be $325,000.
Every one wants the deficit lower; they just don’t want the very wealthy to have any role in lowering it. The American way is for the poor and middle class to be the only ones who pay. Everything is for sale in this great nation of ours. Including our health and our lives.