What is critically needed at this important point in the housing cycle is a measure to assuredly and quickly raise home buying activity. This can be accomplished by providing a homebuyer tax-credit. A nationwide $5,000 tax credit (the same amount currently in existence for homebuyers in Washington, D.C.) will cost the federal government $40 billion. If factoring in rising economic activity and accompanying rising tax revenue, then the true cost could be minimal or even positively favorable. A reversal in the weakness in the housing market, which has been subtracting about one percentage point off GDP growth, can add $40 billion to the U.S. Treasury - essentially offsetting the cost of the tax credit. If the initial $40 billion cost is harder to swallow than a more targeted tax credit for only the first-time homebuyers will cost the government about $15 billion.No way! This discredited Realtor hack's proposal is ridiculous. The US Government should not give out more incentives for people to purchase overpriced housing units. The US Government already has a large deficit and enormous debt. It would be unwise to spend needed money to assist and encourage people to buy depreciating assets.
Monday, March 10, 2008
Lawrence Yun Proposes Federal Dollars to Grease Home Buying
Lawrence Yun proposes federal government dollars to grease home buying:
Posted by David at 10:49 PM