OBAMA RAISED MY RENT!
I live in a cul-de-sac development comprised of 10 units with 4 townhouses each totaling 40 rentals.
At an average price of $750 a month per unit that's about $30,000.00 a month in rental income for the owners.
That puts their annual income at around $360,000.00 a month.
So they are right in the bulls eye of the "small business owners earning more than $250,000.00 a year" threshold of people who would pay more taxes under President Obama's plan for avoiding the Fiscal Cliff.
So I wasn't surprised to see a "Romney/Ryan" campaign sign at the entrance of our development during the election season. It was only there for a few days, but I assumed the owners put it there before taking it down after asking themselves "why go there?"
If you are a Republican renting to Democrats do you really want to stoke that fire? Probably not.
I've lived here for 6 years. Every year in December, we've been given a "Merry Christmas Voucher" knocking $25.00 off our rent.
This year, we didn't get that.
This year I got a notice that :pursuant to the conditions outlined" in my lease, I was being made aware that effective January 1, 2013, they were raising my rent.
I've lived here for 6 years and this is the first rent increase I've seen. According to their letter, it is the only increase in the 12 years since they built this place.
It increased by $15.00 a month.
I assume they are increasing our rent because Obama got reelected and they are passing what they think will be an increase in their tax burden on to their renters.
I'm OK with that.
I have a very affordable home with very attentive landlords who take care of their investment. I want them to make a return on their investment. If my rent increases by $15 a month to keep them afloat while also keeping our Nation solvent, I can do that.
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5 comments:
That was the best post I have read from you in a long time. Thank you :-)
"...$360,000.00 a year."
And that extra $15 a month sounds a whole lot like a 'principle of the thing' increase, or, 'hey - it's a built-in excuse!'
They're probably passing on the additional medicare tax that was imposed on rental property under the "Affordable" Care Act. The higher tax rates Obama is proposing now on high income earners will be an additional tax that will undoubtedly be passed on to their customers after it goes into effect.
It's known as "trickle down economics." In the end, those big bad rich guys will stay rich because you and I will end up paying the bill.
All that said, it appears you have a good landlord.
Jools - I do indeed have good landlords and they take good care of us renters.
Not sure how "...the additional medicare tax that was imposed on rental property under the "Affordable" Care Act." applies but willing to listen.
As far as "trickle down economics" is concerned, U.S. tax rates have never been lower than they are today.
If lower tax rates create jobs, why aren't we at full employment right now?
There is a new 3.8 percent tax on investment income under the Affordable Care Act for people making more than 250K a year which includes income from rental properties. I'm simplifying that greatly as there are many factors involved, but that's the gist of it. It is supposed to help offset the costs of providing medical insurance, medicaid etc under the new Act. There are several new taxes that were included in the Affordable Care Act such as an excise tax on medical devices including things from artificial limbs to wheelchairs.
The above is in effect starting the first of next year. It is entirely separate from the discussions that Congress and the President are having today about raising rates higher.
My point is that you can guarantee that these additional costs will be passed down, ending up with the consumer so the final consumer is the one who will pay and who is really being taxed. I don't understand why people don't get that.
The whole thing is a charade.
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