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Expanding housing tax credit will aid recovery
Date published: 11/1/2009
The fever of recession may have broken, but allowing nature to take its course is bad medicine for housing and the nation's economy. Even if the economy has begun to grow, the outlook for jobs is alarming, with unemployment approaching 10 percent. In the housing sector, which typically leads the way to recovery, foreclosures remain a threat to stabilization in housing prices; builders have been cut off from the credit they need to finish viable projects and begin new ones; and the housing finance system is in disarray. Extending the current $8,000 tax credit for first-time home buyers for an additional year and expanding it to all buyers of a primary home, within eligible income limits, would increase new and existing home sales by 383,000 and housing starts by 82,000. It would create more than 347,000 jobs, generating more than $16 billion in wage income and $12 billion in business income, yielding $8 billion in federal taxes and The credit that expires on Nov. 30 has, according to the IRS, helped 1.4 million taxpayers buy homes. Still reeling from the most devastating downturn since World War II, housing is only beginning to gain the momentum needed to move to higher ground. The federal government's role throughout this crisis has been indispensable. Allowing housing to suffer a relapse is the last thing the economy can afford, Glen C. Raymond Spotsylvania The writer is president,
Date published: 11/1/2009
A little math...
(posted by
brandonj
, Nov. 4, 2009 5:27 pm)
Mr Raymond states that for a 30 billion dollar investment by the government, 347,000 jobs will be created which will generate 8 billion in federal taxes and 3 billion in local and state taxes. So, for 30 billion, the government will get an 11 billion dollar return, resulting in 19 billion being added to the long term national debt. And when the credit stops, if the rest of the economy is in the toilet and unemployment still high, those 347,000 will lose their jobs again. There's got to be a better way.
I can't help but think...
(posted by
brandonj
, Nov. 4, 2009 5:20 pm)
that people who can afford to buy a house in this economy are not the people who need help. Unless you restrict the tax credit to new construction, it will not make a significant dent in the unemployment rate. And if you do that, existing home prices will go lower-which results in people being further underwater on their mortgages. Expanded homebuying tax credits is not the best use of the money we have to borrow from the Chinese and burden our children and grandchildren with repaying.
Again!
(posted by
lifetimelocal
, Nov. 1, 2009 6:34 pm)
And us the tax payers will pick up the bill. Each cash for clunker deal cost tax payers $25,000.00. How do you like the hope and change????
And who will watch the henhouse?
(posted by
AtackDuck
, Nov. 1, 2009 11:57 am)
Will the same government yahoos who watched the housing financing programs be the same ones who brought on the last fiasco? You Betcha! More of the same garbage be peddled as medicine because it still stinks.
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