The 3.8% Tax Is Not a Real Estate Transfer Tax

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  1. Tom English

    Do you think posting “[…] The 3.8% Tax is Not a Real Estate Transfer Tax (Nov. 19) […]” over and over and over again will not make it a tax. Sorry, call it what you want, but it’s still a tax … it’s still a tax …it’s still a tax … it’s still a tax …it’s still a tax … it’s still a tax …it’s still a tax … it’s still a tax …it’s still a tax … it’s still a tax …it’s still a tax … it’s still a tax …it’s still a tax … it’s still a tax … and over and over and over again.

  2. Mike Hume

    It is a tax. Those numbers can change with inflation to affect everyone. When I started there were few sales over $100,000. in my market. In less than 20 years there were few sales under. Depending on the market, recovery could easily change the numbers significantly and a majority of sellers might qualify on a set income and gain. If you say it isn’t a tax it will be in a short time. It is a tax.

  3. Donna Hodge

    Yes it is a tax. No it is NOT a Real Estate Transfer Tax. I live in a state with something called Real Property Transfer Tax, which is a Transfer Tax, which is charged on the sale price, making no exemptions or reference to income, the $250,000/500,000 exclusion, or the income of the seller.

  4. Donna Hodge

    In fact, now that I think of it, our transfer tax is based on nothing but the sale price. Lose you shirt on the house, too bad. The transfer tax is still collected at closing. Our market is 75% short sales and reos. Everyone is losing, the bank, the seller, sometimes the agents take hits on their commissions, etc., but that makes no difference, that transfer tax still has to be paid. It’s extremely regressive.

  5. Brenda

    It is a TAX..as Tom has expressed! And since it is a tax that happens when you sell or transfer ownership it is a TRANSFER Tax…just because it only hits higher earners -does not mean it is not a TRANSFER Tax, or that it is “right”…. this will be a disadvantage to the real estate market! All investors will calculate this into the purchase of investment property – and if the profit margin is reduced significantly by the 35% capital gains tax + an additional 3.8% transfer tax – these same investors may look to other investments. Most investors buy foreclosures and spend money on remodeling and repairs….helping the economy – this will affect the reduction of inventory from the market and it will affect the repairing of these properties.

  6. For all of those above who said “it is a tax” I applaud you. For all who feel they can justify this tax because “it will only affect a few”, I say shame! Regardless of the number of “transactions” that are affected – there are PEOPLE behind those transactions that worked hard to earn what they earn; to make wise investments into their future. Why should they be penalized for that? For too long the mind set that it is OK to “tax the rich” has been running rampant. Mind you – I am NOT rich – so I am not coming from a self-preservation stand point. I am coming from a social economic stand point. If there are people who can afford the million dollar homes, the $4,000 chandeliers, the expensive cars – I say “Thank God!” because every one of those items I just mentioned are built by people just like me – laborers, middle-income family providers. We have no right to penalize anyone for making more money than another – that, my friends, is Socialism. Isn’t it also the American Dream? When did we lose the right to attain that?

  7. ron futch

    Call it what you want, it’s just another way for the goverment to get money out of people. They will never learn the lesson we have to live by, you can’t spend more than you make !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

  8. Ron Romanowich

    Tax or Transfer Tax either way, whatever the name a little nibble now. Minimal Inpact on Real Estate today a bigger bite later. Get use to it and as history has shown it will not be repealed, just become more extensive and expanded to possibly some portion of the upper income brackets, none of the lower bracket, but as it generally evolves as time passes, the Fee, Tax or Transfer Tax or anyother renaming of the levy, right from the pockets of the middle income earners. An 11th Hour Addition, Learn to Love it.

  9. So,NAR has checkened out on fighting this tax ??!! Again.
    The only reason I’m still a Realtor is that I am forced to in order to access the local mls service. What a rip as is the lack of courage by NAR.
    This is a tax…………And it WILL be a transfer tax on lower priced properties.
    It’s just one more way the government,namely Comrad Obama is using the power of the federal government to take individual property rights away and shift all property ownership to the federal government. One more step to toal take over by the socialists.

  10. Paul Breit

    What part of tax don’t you understand? Not only is this a tax, it is an income specific tax! Let’s ALL hope that the US Supreme Court repeals the unconstitutional tax! If this is allowed to stand, what will the US Government “mandate” next?!?

  11. Marsha Cederquist

    Hi , OnTom English’s comment, he did not say it wasn’t a tax. He just said it is not a real estate transfer tax….and it isn’t.

  12. Tanya

    If wealthy people can get tax cuts when things are good (oh, and when things are bad….e.g., while fighting 2 wars int he Middle East) then they shouldn’t mind having to pay more when we are in a recession. If trickle down economics really worked, then we never would’ve found ourselves in this mess considering the wealthy have received tax break after tax break since 1980! There is an inverse relationship between the health of the economy and the tax rates of the wealthiest Americans. That is a fact.

  13. Shawn

    Shame on Tanya. You need to do your homework. “trickle down” works. Gov’t spending, poor federal budgets, and lazy Americans who look for handouts…. That is our problem. Tanya’ why is it better to give our money to the Gov’t rather than keeping it in the open markets?

    Reagan nailed it! “it’s not the tax payers aren’t paying enough taxes, it’s that government SPENDS too much!”

    Stop doing the “rich don’t pay enough” game! We pay nearly 90% of all federal income taxes, how much more should we pay? And yes, I am in that group of “wealthy Americans”. Instead of trying to break me, you should try to join me! Our country would be better off!

  14. Jan

    A tax is a tax is a tax. Call it whatever kind of tax you want, it is still a tax. The government better get their hands out of taxpayers pockets because the next (or continuing to get worse) depression is at hand. Government needs to stop spending!

  15. Gayle Mason

    Amen! Laura Kennedy…..
    A TAX is a TAX no matter what you call it and it is attached to real estate. It will effect all of us in some way or another. Wake up people!
    The Governement needs to be smaller and stop spending out of control. Reduce the Government payroll and you will save millions in s short period of time.

  16. This makes my blood boil. To think NAR just caves in. This is a tax. A tax on Real Estate. Have been a NAR member for 44 years. It is time we got some people on staff to fight for us. The regulation has to stop. If this is not a transfer tax at 3.8% strange how it will bring in Billions to pay for healthcare. The Camel has his nose under the tent.

  17. A couple of comments. First, the very fact that this is a “tag on” “11th hour pay for” to Obama Care (an oxymoron) is not only a sneak attack by the gutless left but a tax on those who work hard, invest money, create jobs and commerce across our great Country. Those who take risks deserve reward. Our country is built on Americans who are not afraid to step out with new ideas, risk loss to anticipate gain and go for it. There is a little bit of waist in government spending I think we can all agree. There are areas where money can be shifted from the taxes we all pay now to offset costs of the reform.
    Second, the example given in the article does not sound like much money in additional tax to pay. The fact is, how many taxes rates have not gone up once they are set in place. This is a foot in the door to increase the taxes in the future. The “Normalcy bias” is a part of Americas culture now. Once we get use to the shock of this tax, its easier for the powers that be, to increase little by little and suck more of the life out of our already floundering economy. Wake up people. When laws are passed without the our elected officials even reading them, skullduggery is on the horizon. enough said!…Damit!

  18. Alberto Alphonso

    I understand that it is not a direct transfer tax, but could be taxable income. Here’s the important thing to remember… the people to constructed this abomination of a health care act are desperate for money to pay for it. This is just the start of the many ways they will use to try and get the money.

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