Sen. Johnny Isakson has reintroduced a bill that would give home buyers a tax credit worth 10% of the purchase price of a home up to $15,000. The Georgia Republican unsuccessfully tried to get the credit inserted into the $787 billion stimulus package that went into law in February. Congress instead opted for extending and boosting an existing credit, worth up to $8,000, for first-time buyers. That credit is set to expire Dec. 1.Again, these types of tax credits are inherently unfair. They effectively force other people to pay part of the cost of someone's home. This is an example of how Republicans lie when they say they believe in small government and the free market. The truth is they don't. This plan will add $35+ billion to the national debt in an effort to stop a much-needed housing correction.
The proposed credit wouldn’t have income restrictions, unlike the current one, which phases out for individuals making more than $75,000 and couples making more than $150,000.
The legislation already has co-sponsors from both parties, including Senate Banking Committee Chair Christopher Dodd, a Connecticut Democrat. In February, congressional budget estimates figured that the $8,000 credit for first-time buyers would cost between $2 and $3 billion, while the $15,000 credit would cost an additional $35.5 billion. ...
Before serving in the Senate, Sen. Isakson spent more than 30 years in the real-estate industry.
On the other hand, if you're thinking of buying now in order to get the current $8,000 tax credit, perhaps you should wait for a better deal.