Wednesday, September 29, 2010

Another ObamaCare© Myth Debunked

Please, people: there's enough "red meat" in the ObamaCare© debacle without having to "make stuff up." In emails and on-line, there's a growing chorus of folks who believe (erroneously) that there's actually a "hidden sales tax" on the sale of people's homes.

No, there isn't:

"(T)here is no "sales" tax on home sales in the health care bill. The bill would impose capital gains taxes on some home sales made by a limited number of taxpayers." [emphasis in original]

Only a few people would even be hit by this capital gains tax: there's a floor on both income and home value. As the Tax Foundation's Tax Policy Blog notes, there's the potential for more homeowners to eventually be affected, based on increasing home values (although there's little evidence that incomes are rising).

Now, if you want to ask “what the heck does selling your home have to do with health care?” Now there’s a great point.

[Hat Tip: FoIB Joe Kristan]
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