SI congressman says tax in Obama health care plan hurts real estate transactions

September 09, 2011 02:39PM

A Staten Island congressman is claiming that a tax on investment
profits within President Barack Obama’s health care plan could affect
his constituents’ real estate transactions, the Staten Island Advance
reported.

“This tax has absolutely nothing to do with improving health
care, and instead punishes the people of Staten Island who have sold
their houses in a tough market and made a profit,” said Rep. Michael
Grimm, who is sponsoring legislation change the law. The stipulation
calls for taxing home sellers 3.8 percent if they make a profit of at
least $500,000, with the tax applying only to the portion of the
profit that is in excess of $500,000, according to the newspaper.

A
couple could only take a hit if they earn more than $250,000; singles
would be affected if they earn more than $200,000. Grimm said that
while many emails circulating about the law are incorrect, it is
still a valid concern. He said the modest home in Queens that his parents
purchased 35 years ago, where his mother still lives, would be
negatively affected by the provision set to take effect in less than
two years, he said, were she to try and sell the house. Grimm’s
legislation to repeal the 3.8 percent tax is under review by the House Ways
and Means Committee. [Staten Island Advance]