Vail Daily letter: Misleading statements
May 11, 2011
Mr. Murawka’s letter is correct. Mr. Butler’s response is not. Butler has a habit of distorting the facts, pulling statements/laws/opinions out of context to create his opinions and implications which are usually false. His failure to mention the $500,000 joint exemption, which he uses as a defense and attack on Mr. Murawka, is a perfect example. His comments and implications are clearly wrong if this information is known. This is no doubt why Butler excluded this critical information.
“A little-known provision in the health care act that was signed into law by Mr. Obama in fact imposes a 3.8 percent tax on unearned income, (This is actually in a separate bill) including sales of single family homes, townhouses, co-ops, and condominiums.” (This statement is misleading and incorrect.)
“In fact, the act levies upon the American taxpayers over $500 billion in new taxes over the next 10 years in addition to the 3.8 percent tax imposed on the sale and transfer of real property holdings.”
“This 3.8 percent surcharge against real estate takes effect on Jan. 1, 2013, and will be devastating to the equity savings of the American middle-class whose base wealth is tied up in their homes, notwithstanding the fact that the majority of those homeowners make less than $250,000 per year.”
Just by reading the quotes above, the clear implication, if not the outright statements made by Butler, is that this secret tax applies to all sales of “single family homes,” etc. It does not! There is nothing in Butler’s letter that provides the complete and accurate facts under which the 3.8 percent tax will apply. Mr. Murawka does.
The 3.8 percent tax will not apply to anyone making less than $250,000, and even then it will only apply to passive income for those persons filing a joint return, making in excess of $250,000 as described in my prior letter to the editor; and only then to any couple who makes a profit on the sale of their primary residence in excess of $500,000. Butler also has a bad habit of ignoring what he says in his original letters when he responds to any contradictory letter pointing out any of his errors. He should re-read his letters before filing a response to another person’s comments.