dave1949
Super Star Member
Think of it as 'gentle persuasion' please; not belittling. If I wasn't 'gentle' enough, I apologize.
Dave.
For those Selling their home or land..
- Thread starter brin
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Think of it as 'gentle persuasion' please; not belittling. If I wasn't 'gentle' enough, I apologize.
Dave.
OP
brin
Super Member
No apology needed Dave, but since you seem to know how misguided I have been in my posts about the new health care bill, I imagine you have read all 2,200 + pages and I would appreciate you telling all of us about the new bill.
Why do you think it is a good bill and how will it improve our health care and reduce costs ? I mean, you must know since you are so aware of my past posts and how , in your view, inaccurate I have been.. So please share with all of us your knowledge of this new bill.
Thank you so much !
dave1949
Super Star Member
You are welcome!
Didn't we have about 4 long running threads over the past six months where people, including you and I, expressed their thoughts about the Health Care Bill? I'm supposed to do it all over again for your entertainment?
Dave.
OP
brin
Super Member
No Dave, if you are too busy I sure understand, it was just that you seem so sure , I had hoped you would share your knowledge.
I do want you to know how flattered I am that you have researched my posts so thoroughly though..
I know you won't mind if I continue to post FYI items I run across and in so doing if I happen to miss a point or two, I know we can count on you to keep it all accurate..
Thank you so much
gengine
Platinum Member
Your right, I missed the $500k exclusion part. It is still more tax above and beyond current taxes. I don't understand raising taxes during a recession. It makes sense, that if you want to stimulate the economy, the consumer has to spend. If you raise taxes on those consumers, that is less $$$ they have to spend, or even want to spend, therefore not stimulating anything. Those people that are making enough to fit into this new tax bracket, are probably the ones who might be able to spend a little more than the rest of us. They won't open their wallets if every time they do, someone takes what they feel is their share. That's $3800 they could spend on new attachments!!
EE_Bota
Veteran Member
Your right, I missed the $500k exclusion part. It is still more tax above and beyond current taxes. I don't understand raising taxes during a recession. It makes sense, that if you want to stimulate the economy, the consumer has to spend. If you raise taxes on those consumers, that is less $$$ they have to spend, or even want to spend, therefore not stimulating anything. Those people that are making enough to fit into this new tax bracket, are probably the ones who might be able to spend a little more than the rest of us. They won't open their wallets if every time they do, someone takes what they feel is their share. That's $3800 they could spend on new attachments!!
I see your confusion. Taxes you pay, you no longer have to spend. That does not mean someone else doesn't get to spend it. It is still wealth. It is just not your wealth any longer. It was transferred to the government, and even some of those folks need attachments. Often, people like us are helped by presuming that all our taxes go to the things we believe need funding, not down some rat hole somewhere.
Now, if you pay that tax, you still have wealth. It was determined that you have plenty of wealth from that transaction, and spending the $3800 is the least you can do. Don't you agree?
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TMR
Gold Member
Sooooo...this appears to be the "facts"?...all joint return
1) 3.8% tax (medicare equivalent) on investment income...GAIN on sale of a house after $500K exclusion...note the the $500K is not Sales Price...but Gain on the sale...so you would need a pretty pricey house to get too far over the $500K Gain exclusion
Once you actually reach the Gain in excess $500K exclusion...
2) the tax only applies to the extent you are OVER $250K in earning...which has some adjustments to it.
Sooooo...as often there is a kernel of truth in the base rumor that "the health law imposes a 3.8% sales tax on the sale of your residence"...but it is a SMALL kernel of truth and the tax will likely only apply to well under 1% of taxpayers (my uneducated estimate)...not sure how many both earn over $250K AND still have a $500K GAIN on their house after the housing market price carnage...and who also happen to sell their home...after 2012 when it begins to apply.
Example of Rumor vs Fact:
Rumor...sold house that cost $500K for $1,000,000...NEW tax = $38K
Fact...sold house that cost $500K for $1,000,000...cost $500,000...new tax = $ZERO
At least I think we now have defined the huge error in the rumor...which had major circulation...AND we have also defined that there was just a BIT of truth to it.
Maybe we should take on the dreaded death panels that are going to pull the plug on Granny
TMR
1) 3.8% tax (medicare equivalent) on investment income...GAIN on sale of a house after $500K exclusion...note the the $500K is not Sales Price...but Gain on the sale...so you would need a pretty pricey house to get too far over the $500K Gain exclusion
Once you actually reach the Gain in excess $500K exclusion...
2) the tax only applies to the extent you are OVER $250K in earning...which has some adjustments to it.
Sooooo...as often there is a kernel of truth in the base rumor that "the health law imposes a 3.8% sales tax on the sale of your residence"...but it is a SMALL kernel of truth and the tax will likely only apply to well under 1% of taxpayers (my uneducated estimate)...not sure how many both earn over $250K AND still have a $500K GAIN on their house after the housing market price carnage...and who also happen to sell their home...after 2012 when it begins to apply.
Example of Rumor vs Fact:
Rumor...sold house that cost $500K for $1,000,000...NEW tax = $38K
Fact...sold house that cost $500K for $1,000,000...cost $500,000...new tax = $ZERO
At least I think we now have defined the huge error in the rumor...which had major circulation...AND we have also defined that there was just a BIT of truth to it.
Maybe we should take on the dreaded death panels that are going to pull the plug on Granny
TMR
EE_Bota
Veteran Member
Sooooo...this appears to be the "facts"?...all joint return
1) 3.8% tax (medicare equivalent) on investment income...GAIN on sale of a house after $500K exclusion...note the the $500K is not Sales Price...but Gain on the sale...so you would need a pretty pricey house to get too far over the $500K Gain exclusion
Once you actually reach the Gain in excess $500K exclusion...
2) the tax only applies to the extent you are OVER $250K in earning...which has some adjustments to it.
Sooooo...as often there is a kernel of truth in the base rumor that "the health law imposes a 3.8% sales tax on the sale of your residence"...but it is a SMALL kernel of truth and the tax will likely only apply to well under 1% of taxpayers (my uneducated estimate)...not sure how many both earn over $250K AND still have a $500K GAIN on their house after the housing market price carnage...and who also happen to sell their home...after 2012 when it begins to apply.
Example of Rumor vs Fact:
Rumor...sold house that cost $500K for $1,000,000...NEW tax = $38K
Fact...sold house that cost $500K for $1,000,000...cost $500,000...new tax = $ZERO
At least I think we now have defined the huge error in the rumor...which had major circulation...AND we have also defined that there was just a BIT of truth to it.
Maybe we should take on the dreaded death panels that are going to pull the plug on Granny
TMR
Have you come across any projections as to how much revenue this was designed to raise?
Instead of dealing with death panels, I would rather hear your opinion of the advisability of adding a new entitlement in the current fiscal environment, and your opinion (best guess) about the eventual effects of the bill on the country's fiscal outlook. Do you buy that is will be a net savings to the budget?
So who determines, and how should it be determined how much of my "wealth" I should be allowed to keep? Should there be a limit on how much wealth I should be allowed to have? There's a 500k deduction now but that can be changed perhaps?
TMR
Gold Member
While I consider myself a fiscal conservative...I believe we must address both the current cost/delivery of medical care and the huge number of uninsured Americans...who end up using emergency care instead of going to much less expensive clinic settings. I find the current bill "flawed" and wish the Republicans had had genuine involvement in its drafting. Currently, I would favor an "amendment" approach over the "repeal and replace" approach since the R & R is entirely political and has NO chance of getting anywhere. There is already a growing list of relatively bi-partisan amendments floating around but they will not be addressed until the political R & R is complete.
Even though our budget deficit is likely the country's biggest problem...somehow we need to find an efficient way to care for the uninsured. Anyone notice how fast both parties first complimented the bipartisan commission that recently released an aggressive Plan to reduce our deficit/debt...BUT as usual the conservative refuse to even consider anything that smells like a "tax" and the liberals refuse to consider anything that looks like a social program reduction...both sticking to their radical ideologies...which will result in nothing happening. On Ronald Reagan's recent birthday anniversary I heard one of his speeches where he stated all the bad things that would come from deficits/debt...then he proceeded to create huge deficits...as have all presidents except Clinton. Clintons last term was the closest we have been to actual bipartisan politics...only because he had to.
My hope is that we are now in a similar situation where Obama must move to the center with the Republicans in control of the house...although I am not sure the conservatives will meet him in the middle. If we don't get some solid bi-partisan compromise our future will find us in a similar financial condition to Greece and Ireland. BTW...you do need BOTH tax reform/increases AND large spending cuts...not one or the other. Need my coffee
TMR - Status