Wednesday, March 25, 2009

Republican housing plan: Renters should subsidize homeowners

Apparently, today House Republicans are returning to their plan to fix the economy by having renters subsidize the mortgages of homeowners:
House Republican leaders plan to unveil a housing package today that would increase the tax credits available for home buyers and would direct law enforcement to crack down on mortgage fraud.

Under the proposal, borrowers refinancing their mortgage would be eligible for $5,000 to help cover closing costs or to reduce their principal balance. The plan also revives a $15,000 home buyer tax credit proposal that Republicans pushed last year. This time, the proposal would require the borrower to have at least a 5 percent down payment. Both programs would expire in July 2010.

"We want to make sure responsible homeowners are able to purchase homes and stay in their homes," said House Minority Whip Eric Cantor (R-Va.), who will introduce the legislation. "If you can get a $15,000 tax credit, that is a tremendous incentive to get qualified buyers back into the game."

Brendan Daly, a spokesman for House Speaker Nancy Pelosi (D-Calif.), said he had not seen the proposal but that Democrats are committed to strengthening the housing market. "We have already seen a boost in home sales due to the $8,000 tax credit for first-time home buyers in the economic recovery package signed into law last month by President Obama," Daly said.
This plan demonstrates that, just like Democrats, Republicans do not believe in the free market. Why do politicians always want to meddle with the free market?

Don't like the housing bailouts? Let your congressmen know.


  1. What happens after April 15th. The $8,000 boost numbers will be diluted over the rest of the year.

  2. I'm not seeing where this really punishes those of us who didn't buy during the boom.

    It's a typical problem with the Republican party right now though... cut in taxes... but keep up spending.

  3. supernintendo chalmersMarch 25, 2009 11:57 AM

    f'ing Cantor.

    infinity8ball nailed it wrt taxes/spending.

  4. What are the odds of this thing becoming law anyway? I'd guess there is a low probability.

  5. Not sure that it's accurate to talk about renters subsidizing home owners. I've read that 70% of income taxes are paid by the wealthiest 10%. And, while I don't have the data, I would guess that the wealthiest 10% are generally home owners. I suspect that while there are clearly exceptions, renters as a group, probably don't pay a high percentage of the nation's total income tax. And, certainly pay no property taxes (directly). So, a more accurate conclusion might be that some property owner's are subsidizing other property owners.

  6. This is just another classically stupid idea. It doesn't matter whether you are republican, democrat or something else.

    This is just an attempt to gain popularity by handing out free money.

    It won't do this country a bit of good to waste a mountain of money in such a way, but some politicians are either too short sighted or just don't care.

  7. I can't really tell the difference between the two parties anymore. It's about time we got a competing proposal though. We need more term limits.

  8. I agree with needing more term limits.

    ...and it is depressing as hell that it seems impossible to tell the difference between the two parties. Neither seems willing to make any hard choices. They are both just trying to cook up different ways to distribute money and favors to their backers.

  9. BigDragon said...
    "I can't really tell the difference between the two parties anymore."

    One party is a religious party and the other is a secular party. Economically, they are basically the same, though.