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-- -- -- the president has been touting a lot of the freebies and his health care law what he did not discuss at his Mother's Day themed event of the White House today was the mother of abilities left on those have to pay for at all.
For one -- -- three point 8% Medicare tax on proceeds from large asset sales like a home.
Zombies sort of see admire a president but not when it comes.
To this because -- a big real state developer who could -- -- tax but feels more for the hit on average votes.
Who obviously if you -- it do they try to celebrates the property -- Do you think this is real -- potential.
-- well now I don't think it's the I'm doing but -- slow the process down.
And has some danger signs because the challenge here is that it will discourage.
Seles Seles who don't have to sell right now the biggest you know we have New York -- -- -- hot market Miami's hot.
-- around the country has really turned around.
But the biggest challenge in many markets like New York Miami DC is a lack of inventory.
Not a lot of product to sell and that have the impact of slowing things down.
What this tax does combine with the increasing capital gains that collectively account for 860%.
In cap long term capital gains tax rates.
What that does that makes so so if you don't have to sell.
Commercial office buildings commercial properties.
They won't they won't sell -- just refinance activity and apparently low interest -- on you if you're just an average investor you know yet to give the real answer.
They're the 6% governor is -- a -- at a more present Medicare surtax math that's 10% right off the top and is more -- and perhaps they they don't necessarily.
But then you're thinking about the price you'd have to say I'm sort of make up of that and the in this environment where it's improving but it really hasn't come back to the levels you want.
It's not a mystery to me -- a lot of homeowners are decent tonight -- -- -- -- -- because the cost of sale and even if you get a big bump in sales prices self prices are up.
Say in Miami around ten real real price increases about 10% -- -- with the NFL's all this all taken away.
And so that the don't know about -- three point it presenting to live alone Europe is that the capital gains -- all the statement that.
-- only a lot of bugs and don't know a lot of people don't know about it.
Bomb the commercial market of course understands it and knows about it because we're more sophisticated about what's going on here somebody you do and you guys do around it or Kenya -- that you just hold off on.
On asset sales and would you do where you wait until prices are increasing sufficiently enough war.
You refinance bomb and and don't sell office buildings -- don't sell part time and really wrong right now what are you waiting.
More you just do will you don't you can take cash out.
Without having to pay taxes on refinancing but I didn't when -- -- to some of you were actually hoping that maybe just three point 8% and has rescinded much like.
You know the device makers tax that might go away I don't know where they're gonna have the money spent for that but.
But that if you.
Wind it's out enough that that that can be taken care -- a graduating who were hopeful that they'll be some comprehensive role.
Fiscal reform that that's not counting and it's not happening yet -- fronts but you know the president Reza was it about the media consultants and look.
President and that's when you know -- -- not happen.
No we -- but we are in the business community that we do have a voice and within the administration.
We express just -- a great theater I agree with the goal the challenges we agree with the goal.
We still worth just don't agree on how to pay for -- heat -- -- the way he's doing it complete with this Medicare tax penalties on the taxes you don't.
You said that you union visited it and it's being heard but.
-- might be summit is being ignored.
Well I think that it's now being responded to an -- beauty of a two party system.
Is hopefully they'll be some checks and balances in the congress and ultimately they're going -- got a bit unlucky and it wasn't what you're saying -- -- Obama backer who hopes of checks and balances in the congress will get rid of this.
Well I'm hopeful that -- get greater reform more of Republicans will -- losses where -- be a part of the processor the adversarial probably one Democrat who wants to get rid of that Medicare served.
I've not one come out alive actually Don peoples okay -- -- -- got excellent but you're not -- all -- -- -- I'm not yet but not for awhile but you're considered.
You know I would I believe that all of us should there who can bring the private sector experience into the -- guys that you don't.
An obvious he's seen whatever sordid and and yet -- process it is.
And you decide not to and that bond bums me out because -- -- wondered -- if you have the smarts that you have the private sector Smart guys that you never do.
No it's challenging -- -- -- but we have -- New York City we have Michael Bloomberg for twelve years who was an amazing manager.
And understood how to run a city like a business and and New York City got through a very difficult fiscal time period and so the private sector those of us ought to serve.
They're not because of the it is it's just over time you're seeing more -- that that would not view.
Not yet not yet not yet really popular so when you do run we announce a person sure -- -- excellent good moments of learning that the symptoms.
Stuff across this club president influenced on people's thank you very much People's Court.
Close of both parties both parties -- like him -- -- instantly should make you suspicious anyway on.
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