Senate OKs $15,000 tax break for homebuyers

[mia]

Source: Associated Press

WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan.

The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.

"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."

Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.



Read more: http://news.yahoo.com/s/ap/20090205/ap_on_go_co/congress_stimulus

---

Good news. I hope this helps to stabilize the housing market.

[OhioChick]

1. Doesn't help those without jobs or in fear of losing their jobs.

They're not going to be house-hunting.

[Stellabella]

3. Right. And it doesn't help those who make less than

whatever amount pays $15,000. I assume it's pretty close to $80-90 K after deductions. So unless you make enough money to pay $15,000 in taxes, this is illusory.

[Muttocracy]

11. it's based on 10% of the home cost *up to* $15,000, but I'm not clear exactly how it works

in terms of a deduction - is it a reduction in taxable income or a reduction in taxes? I'm not sure what happens if you're on the line of getting more of a credit than you pay in taxes - does that mean you pay $0 taxes or get a refund?

The full text of the bill is online - going to get the link

[customerserviceguy]

12. If it's like the $7,500 credit approved last year

it's refundable. In other words, you would get the whole $15K in one lump, even if you had a more modest income than the $80-90K you mention.

[justaregularperson]

18. If it is open to anyone it will benefit primarily investors and multiple home investors - which..

would suck

[justaregularperson]

21. Just read - Must be principle residence. Still a credit is too much. Should be a tax break.

[No Elephants]

56. Why not a payment to the Seller? Only people who have no choice are selling

homes now.

[customerserviceguy]

70. What do you mean by "tax break"?

People already get itemized deductions for mortgage interest and real estate taxes, those two things make up about 90% of a person's house payments. What the tax credit is designed to do is give someone a down payment on a house. In an environment where credit is very tight, and down payment requirements are up, this makes sense.

It's limited to principal residences only, held for a period of time, so that leaves out the house flippers and other speculators. At some point, even they will be important in shoring up the housing market, although we don't need to incentivize them in the tax code any more than the provisions that already exist.

There are really only two choices here: One is to try to arrest the severe slide in housing prices, which are secured by mortgages that underlie the toxic securities that have brought the whole economy down. That's going to take some bold initiatives. The other is to just let the prices continue to slide, and the market will eventually provide a bottom. Traditionally, an average house should cost about 2.5 to 3 times a typical family's annual earnings, and it's clear that in many markets, prices are still way above that. But if we choose the latter course of action, then be prepared for a continued downward spiral of the economy along with those prices.

It's unfortunate, we tied so very much of our economy to residential real estate, so that we would inevitably suffer when that sector of the economy got in trouble. Frankly, it might well have been caused by tax incentives directed towards residential real estate, such as the deductability of mortgage interest and real estate taxes, as well as making profits from the sale of principal residences into tax-free income. Paridoxically, we may need tax breaks to cushion the fall from the great heights that tax breaks got us to in the first place.

[Psephos]

22. It does help them if they are in the construction, furniture, real estate, and other industries

Meanwhile, it helps reduce inventory of houses, which is the only way real estate prices will ever rebound.

I don't see much to hate on here.

[Frank Booth]

23. Except house prices were run up way more than they should have been in the first place,

due to fraudulent mortgages and flippers. If real estate prices "rebound" to the artificial levels of 2007 (and they're still higher than they should be) the country will be in for a lot more trouble.

[Psephos]

34. No one is arguing for a bubble to return, especially not me

but prices are so depressed now that millions of people are upside down on their mortgages, and afraid to spend any money, which deepens the economic downturn. A modest uptick in housing prices would act as a general stimulus to the economy, which is supposedly what the whole $900 billion stimulus package is all about.

[Frank Booth]

42. I guess you're looking at it as someone from Michigan (where houses can be had for $100)

while I'm looking at it as someone from Southern California (where they're still offering small, crappy 2 bedroom houses for $700,000).

If there were a way to bring about an uptick in prices in the Midwest, while letting prices return to a reasonable level in other places, I'd be all for it. Unfortunately, for whatever reason, there are a lot more speculators in California than in other parts of the country, and people who try to save money and live responsibly often get screwed because of it.

[No Elephants]

57. People who can USE tax deductions for buying homes in this economy are

not likely to be the neediest among us.

[Psephos]

77. It's not an either-or situation

We can assist the neediest among us with direct aid. Meanwhile, why not give the economy a powerful push by incentivizing home sales to those with some means. Until the glut of unsold houses declines, the economy will not recover. That's hurting the neediest as well as the middle class.

[OhioChick]

87. People need jobs first...

Whether it be in "construction, furniture, real estate, and other industries" in order for others to buy, thus creating a need for these positions.

[Psephos]

89. Divide $900 billion by the number of people who have lost their job since Jan 2008

and you get $300,000 per person.

In other words, you could give every last one of them a nice house free and clear, and still save three or four hundred billion dollars.

Do you see why I have trouble with your point of view?

[Telly Savalas]

103. This assumes that the tax credit changes the behavior of people considering buying a home.

That is, for this to have any impact on the sectors there have to be a large number of people who would not buy houses without a tax credit, but will because of the tax credit. Is there any evidence to suggest this will happen? My understanding was that the credit just reduces one taxable income by the credit's amount, so the tax savings are pretty small in comparison to the cost of buying the home, so it's hard to imagine the tax credit being the tipping point in very many family's decision on whether or not to buy a home.

Hence, it looks like this credit will only subsidize the decisions which were going to be made anyway. If this is the case, then the credit has minimal stimulus effect. It frees up some extra cash for home-purchasers, but these folks are disproportionately upper-middle class and upper class -- folks with a higher marginal propensity to save rather than spend the extra cash.

Moreover, the credit would only reduce inventory when non-homeowners buy their first homes. If a current homeowner buys a new home, then presumably they'll have to sell their current residence resulting in no net change in inventory.

[valerief]

2. Well, it'll help the wealthy, who don't need it. They're the only ones who can afford houses now. nt

[Sarah Ibarruri]

6. Exactly. Without jobs, there's no money, so who's going to buy something without money? nt

[OhioChick]

7. Absolutely. n/t

[TahitiNut]

16. It's disgusting, imho. But what else can anyone expect from the GOP?

Their 'base" - the haves and the have-mores. :puke:

I'd rather see that money got to folks who renovate, insulate, and make their homes more energy-efficient -- and to assist folks whose mortgages have 'capsized.'

[depakid]

47. That's one of the things Kevin Rudd and the Aussies just announced

Australian will be entitled to insulate their homes. That's win/win investment.

They've also subsidized residential and low income housing (there's not been a housing market crash in Oz- largely due to supply being tight in many places).

In many respects, the Aussie plan is everything America's plan could be but isn't (at least not yet).

[mainegreen]

28. Bullshit. We're a family making around 60k a year total, and we're buying a house now.

We scrimped and saved for six years.

I'd LOVE to get 15k back so that we can do repairs that will be needed to the house, sooner rather than later.

[leftynyc]

62. And I'm happy to give it to you

This will help stimulate the housing market although it's only a small part of what's troubling this economy. I'm thrilled to give my tax money to help people buy homes so they can, in turn, hire people to do repairs or remodeling. The people complaining this will only help the rich are not thinking this through.

[DirtFrmr]

106. Deleted by owner

Sorry, wrong thread!

[SomeGuyInEagan]

73. First off, cute kid! And, OF COURSE this will help people below the top 10%

People against this are not thinking this through.

This is one, small piece of the entire fix. People like you - who have been responsible, saved, use prudent sense - have been left out of the market for much of the past few years in many markets because of the outrageous increase in home prices. We were lucky and got in in 2001, after ten or so years of renting for a variety of reasons but always saving with a down payment in mind (and when real estate agents tried to get us to buy more and get into ARMs, we said no). So, now you are in a position to buy which will help you BUT ALSO HELP ALL OF US!

Our neighborhoods, towns, cities, COMMUNITIES all BENEFIT when people are in a position to purchase their homes. This will help more people get into that position.

Also, this may help some people - who still may lose their home - to downsize to a more affordable home, keeping them in their own home.

And - as anyone who buys a house knows - once you buy you immediately start spending for appliances, curtains, paint, remodeling, etc. This benefit may be the difference between someone buying and not buying ... buying puts more money into circulation at several levels, helping increase employment.

Again, this is only one small piece of the fix. I still believe a massive government JOBS program should be the cornerstone of any plan, but also believe we need a diversified plan.

[valerief]

82. Good luck. You're one of the few. But it's mostly the rich who'll be buying up property. nt

[spooky3]

113. the amendment requires that you live in the house 2+ years

or else you have to repay the credit.

So even the rich can use it only once.

[Baby Snooks]

29. The rich are who made this country great...

That is the attitude of Congress. The rich get richer, the poor get poorer. And soon, the tax increases will hit. Hit the middle class. To support the rich and the poor. Voodoo economics. Stick it to the middle class. Does anyone stop to think about what all of this is going to cost our children and grandchildren or does anyone care?

It does not trickle down folks. We've been there, done this once before.

[Psephos]

38. It's not the rich who made it great, but those who worked to better their station

through effort, vision, and innovation.

No broad-scale incentive has been discovered so far that works as well as the possibility of economic advancement.

I'm not advocating, simply observing.

[valerief]

83. The Congress are the rich. nt

[Doremus]

40. Wrong. My brother makes about $2K/mo. and he's buying a house.

The prices in his area have dropped so much he really can't afford NOT to buy. Rent is more $$.

[crim son]

61. Right:

I just bought a house. My mortgage is $250 less per month than the rent I was paying on the same house, and the utilities were always my responsibility.

[valerief]

84. Great! He hasn't lost his job yet like so many others! nt

[Telly Savalas]

104. So you're saying that there are already such strong incentives to buy a house

that a tax credit is unnecessary?

[krabigirl]

108. Not so sure about that. Doesn't this have an income limit? The original $7500 did.

[spooky3]

114. no, it doesn't - unless Pelosi and Reid decide to put one in, in reconciling

the two bills

[alexandria]

4. Great News.

Maybe more people will buy a house now with this deal.

[Sarah Ibarruri]

5. Problem is, this doesn't provide the down payment necessary to get into a home .

There are those who can well afford a mortgage but cannot step into the purchase of a home because they lack the down payment. How will this help them?

Also, I wonder what happens with home insurance. Insurance companies here in Florida are refusing to insure homes.

[customerserviceguy]

15. I agree, Florida is seriously screwed

with the insurance companies there. They are trying hard to recoup everything they put out on the massive hurricanes that happened a few years ago.

But the housing market's freefall is the basis of the current economic crisis, there are two ways to deal with it. One is to try to shore up the bottom of the market, and this tax credit is an attempt in that direction, the other is to let it find it's own bottom, and we may not yet be near it without government intervention.

Which course do you prefer?

[Sarah Ibarruri]

53. I don't know. nt

[TahitiNut]

19. Actually ... it can, under certain conditions.

If the individual(s) purchase a home (as soon as this law is passed) in 2009 and ELECT to treat it as though it were purchased in 2008 (which the language I read permits), they can apply the tax credit against their 2008 federal income tax. *IF* their tax liability/withholding is such that they'd get the 10% of the price of the home as a tax refund, that money could be used to pay back a personal loan (from family?) used to make the down payment.

So, assuming a down payment of 10% on a $140,000 house - borrowed from a parent or brother - that $14,000 would be refunded in fling their federal income taxes. They'd then pay back the personal loan. That would, of course, assume they had that much tax liability to begin with. Otherwise, they could take the credit over two years (2008 and 2009, assumedly).

(h) Election to Treat Purchase in Prior Year.--In the case of a purchase of a principal residence during the period described in subsection (b)(1), a taxpayer may elect to treat such purchase as made on December 31, 2008, for purposes of this section.

[Sarah Ibarruri]

50. True. nt

[No Elephants]

58. IF the mortgage lender allows you to borrow the down payment or any part of it. Many

do not.

[GinaMaria]

27. Would there be any way to use the credit as a down payment?

As part of the deal? That might really help people. Does this do anything for people who already bought a home but are struggling to stay in it?

[Connonym]

48. exactly, doesn't do anything for people who have been foreclosed

I lost the 20% downpayment I had on my house when I lost it in foreclosure. One bad stretch of under employment and now I'll probably never be able to own a home again.

[GinaMaria]

85. sorry to hear about your troubles

Hoping for better days ahead for you and your opportunity to begin fresh.

[Sarah Ibarruri]

51. I wonder that too. What are they doing for people to stay in houses? nt

[snooper2]

69. you are supposed to save for your down payment..

Took a couple years for me along with fixing credit issues so I could get a good rate.


This is what the vast majority of people do as the vast majority of people can't shit 3-5% down...

[Zhade]

90. SAVE? In THIS economy?

Pfft. Yeah, that's so easy to do. Wonder why I never thought of it.

:eyes:

[Psephos]

79. Giving mortgages to people who can't afford a downpayment is part of what started this mess

Ability to save up a downpayment is a demonstration of ability to service a mortgage in the future. Not perfect, but certainly better than the practice of giving mortgages to anyone, regardless of credit risk.

[PassingFair]

86. People used to use the gains on the sale of their more modest home...

as down payment on their next home.

So many are underwater now, though,
even if they HAD equity, it's been
wiped out by falling housing prices.

[Psephos]

88. Quite true

From my perspective, that situation means they're going to be out of the new mortgage market for awhile. Unless, of course, they can make someone else pay for the consequences of their actions, so they can do it all over again.

There is demand for housing, and qualified people to buy houses. The problem right now is that no one wants to buy unless they feel fairly sure the bottom of the market has been reached. That can't happen until the props and stilts are pulled away, and actual economic equilibrium between demand and supply restored. Anyone who thinks a bureaucrat is going to dictate price (whether by fiat or by ham-fisted market manipulation) failed to study the history of command economies throughout the 20th Century.

At some point, the government, the banks, and the mortgage holders are going to have to admit that the money is gone and isn't coming back. Right now, everyone is behaving exactly like an alcoholic, blaming everyone else, and refusing to admit that their actions and decisions are the root of their problem.

The system will flush itself out once these hard acknowledgments are made.

Wealth is created by human effort and ingenuity. It is a renewable resource. Our job now is not to protect the past, but to protect the future, so that wealth renewal can begin again in earnest. Borrowing a trillion from foreigners that our kids will have to pay back with interest is not only immoral; it is, by definition, insane. To wit: "Insanity is doing the same again that got you in trouble and expecting a different result."

[PassingFair]

97. You must be cushioned by the university housing demand...

even people like myself who bought LOW in the 90's
have had their equity wiped out in my neck of the woods.
The only houses selling in my suburb are at FIRE SALE
prices on the multitude of foreclosures.

People who bought at the high end are REALLY underwater.

Much suckage.

[Psephos]

98. Sorry to hear about your equity decline...

Seriously. :-/

Personally, I live simply, and haven't suffered as much as others (so far) from the bad economy. I give thanks for that every night.

I'm self-employed, have been saving for several years, and will look to buy a moderate house with FHA financing when I can sense the market bottom has been reached. I imagine there are a lot of others like me, waiting for the storm to pass. Which it will.

Meanwhile, as we both tough out the nation's worst economy, I wish you good luck and good spirits. If you can keep your head above water with your mortgage, I think you'll eventually recover a good chunk of that sunk equity.

[Zhade]

91. People used to be able to SAVE.

I make over 50K a year. But thanks to the cost of living in SoCal, saving is a pipedream.

[Psephos]

93. Then consider moving. I used to live in L.A. myself. Now I just visit.

Out here in God's Country, last year I was able to save more than a fourth of what I made. I hope to do the same this year. I live simply but well, and have everything I need for body and soul.

[FreeStateDemocrat]

102. The seller "gives" the down payment back at settlement. Sell at 150k & net 140k = 10k to buyer.

At least that is how it is done in my area, real estate agents said no first time buyers save for a down payment anymore. The number above is also affected by commissions, settlement costs, required repairs and anything else they can bleed you for when trying to unload your shack which is part of the reason for foreclosures. So when you see a house was sold for say 150k the seller actually received considerably less.

[Sarah Ibarruri]

8. Since the gap between rich and poor is monstrously huge, why don't they offer things to the middle

class, rather than always to everyone? God knows the rich already are better off than they've ever been!

[BlooInBloo]

9. Because 1 housing bubble is never enough.

[sandnsea]

10. My thought exactly

The whole thing is starting to make my stomach churn.

[BlooInBloo]

14. I suppose if they ban ARMs or something, it might work out for the idiot buyers.

[Muttocracy]

13. Full text of the amendment

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x4981659#4982181

[benld74]

17. THIS helps THOSE THAT HAVE, NOT Those who are hurting!!!

[truthisfreedom]

20. True, but so many people trying to sell homes are hurting, and if there's incentive to buy,

then it helps the hurting.

[sarcasmo]

65. How can those who have no jobs buy? This is so out of touch with the real problem.

650,000 new jobless claims, that is the problem that needs to be addressed.

[WriteDown]

24. So what does this do for people who have bought homes...

already. I would sure like a 15K tax rebate.

[Juan_de_la_Dem]

25. So this would be a credit to next year's taxes?

[Muttocracy]

26. I think so - or spread over 2009-2010 - it's in the amendment text linked upthread. nt

[Juan_de_la_Dem]

30. Thanks. I read it but wasn't 100% clear. Might that not be too late for many?

[Muttocracy]

32. actually could buy now and claim for Dec 2008:

`(3) ALLOCATION OF CREDIT AMOUNT.--At the election of the taxpayer, the amount of the credit allowed under paragraph (1) (after application of paragraph (2)) may be equally divided among the 2 taxable years beginning with the taxable year in which the purchase of the qualified principal residence is made.

``(b) Limitations.--

``(1) DATE OF PURCHASE.--The credit allowed under subsection (a) shall be allowed only with respect to purchases made--

``(A) after December 31, 2008, and

``(B) before January 1, 2010.

...

(h) Election to Treat Purchase in Prior Year.--In the case of a purchase of a principal residence during the period described in subsection (b)(1), a taxpayer may elect to treat such purchase as made on December 31, 2008, for purposes of this section.''.

[Juan_de_la_Dem]

33. Thanks for pointing that out.

[AzDar]

31. Anyone know if this is for first-time buyers only?

[Muttocracy]

36. I think it's for primary residence only - not sure of the effect on last year's homebuyer credit:

http://thomas.loc.gov/cgi-bin/query/F?r111:1:./temp/~r111ll4mPE:e0:

``(1) IN GENERAL.--In the case of an individual who is a purchaser of a qualified principal residence during the taxable year, there shall be allowed as a credit against the tax imposed by this chapter an amount equal to 10 percent of the purchase price of the residence.

...

``Sec..25E..Credit for certain home purchases.''.

(c) Sunset of Current First-Time Homebuyer Credit.--

(1) IN GENERAL.--Subsection (h) of section 36 is amended by striking ``July 1, 2009'' and inserting ``the date of the enactment of the American Recovery and Reinvestment Tax Act of 2009''.


----------

I thought one of the bills extended the first-time buyer credit from last year?

[GoddessOfGuinness]

35. Now McCain can have 9 houses instead of 8.

Ain't that grand?

[Muttocracy]

37. amendment is for primary residence. nt

[GoddessOfGuinness]

41. Well I'm glad to hear that; but

it still won't help the folks who are afraid of losing their jobs. :(

[Muttocracy]

43. Yeah, it's certainly more of a general economy thing than specific help for those in trouble. nt

[Maine-ah]

76. it doesn't help those of us who are in danger of losing their houses either

[mia]

80. Treading water here, too.

I'm renting my bedrooms to college students to help cover the unforseen expenses that have been coming my way and trying to save for future cuts in the public schools. Just heard today that the school board is going to ask teachers to work without pay for a few days. Principals have been given a 10% pay reduction for the rest of the year.

[No Elephants]

60. Thing is, McCain could have had the ninth house anyway. This just makes his ability to

buy in this economy an even sweeter deal for him. Just what taxpayer money being spread around by Democrats SHOULD do. NOT.

[DallasNE]

39. We Need A Multi-pronged Approach Because So Much Is Screwed Up

I presume this only applies to a primary residence and that someone can't simply shift a designation over in order to get this $15,000, i.e. making this residence like a P.O. Box. With proper safeguards this can be a good bill. While this will be costly, it will only be a small portion of what is necessary for job creation. It will take time for this to create even one job because this money will be used on the glut of housing inventory on the market today. And that is the problem with all of these tax breaks; they create no new jobs until after existing inventory has been brought down to a managable size for businesses and for individuals the money goes to pay down existing debt, put into savings or to buy goods made in China. Just look what happened with the 2008 rebate checks. The economy lost jobs in every single month during 2008. Tax cuts should be a much smaller portion of the plan, although cuts aimed at a specific, targeted segment of the economy, like housing, can and should be part of the package.

[scheming daemons]

44. The economy will CONTINUE to tank until the housing market stabilizes...

...and that affects ALL of us.

People who are upset about this simply don't have a clue.


This creates jobs... construction, real estate, furniture sales, landscapers, etc...


...and stabilizing the housing market is the first step to getting out of this recession.



Quit being so reflexively against something just because some Republicans like it. This is a good thing.

[closeupready]

54. Are you arguing in favor of trickle down?

??

[GregD]

45. They need to revise the FNMA mortgage limit

A new rule was enacted Jan 1 that prevents investors from owning more than 4 mortgaged properties.

So this tax break is nice and there would be all sorts of investors jumping all over it, but anyone who is over the limit for mortgages are totally out of the market unless they want to incorporate and purchase properties inside the corporation.

[olddad56]

46. bad plan, you want to get the economy going, raise interest rates and wait.

Prices will come down, people who can, will start saving rather than investing in the wall street ponzi scheme, and when it all shakes out, the economy will start to heal. Fuck the feds and their artificially low interest rates, it is a scam.

[Rebellious Republican]

49. So far lets see what kind of help I am getting, tax credit if I buy a car,

tax credit if I buy a new house. These are the two things that I understand have been guaranteed. The savings is really adding up for me. The only problem is, that while I may still have a job now that only pays $30,000 a year.

I may not in a couple of months, and at the very least I am being told that my pay may be reduced by 5% or I will have to take a two week UNPAID furlow.

Yep, makes me want to run out and buy a new car and house so I can have a nice payment to make when I am receiving unemployment benefits.

Who are these people fooling, just more tax cuts for the wealthy, because the wealthy are the only ones who can afford to do these things.

Whats that old saying about putting lipstick on a pig?

[closeupready]

52. And again, low-income renters get screwed. Wonderful.

:mad:

[No Elephants]

55. Regardless of the cost of the home? Another provision to help those who

do not really need the money. Housing prices are so low now that people already have every incentive to buy. This helps those who want a better home than they are paying for AND who are able to use a tax break of up to $15K. It's not the job of a taxpayer to help someone who can use tax breaks right now to get a better deal on a new home. Meanwhile, sellers who can possibly avoid selling now will sit tight.

Meanwhile, people who have been out of a job for a year are still screwn.

This whole thing is a joke.

[4dsc]

59. They want to reinflate the housing bubble

Republicans want to reinflate the housing bubble because they have destroyed the middle class. They was American's to use the equity in their homes as a piggy bank to support consumerism..

[lonestarnot]

63. Good luck with that when people have no jobs.

[sarcasmo]

67. Many of us can get that point, why not the President, just a shame.

[lonestarnot]

71. What you don't care for the jobs bill?

[sarcasmo]

78. The jobs bill, LOL.

A 15,000 tax credit on a house does not create a job. A tax credit on a car does not create a job. You need a JOB in order to purchase a house or a car, we have NO jobs in Michigan.

[lonestarnot]

96. Have you read the bill?

[sarcasmo]

64. How is this going to help those of us who have no jobs and can barely afford to stay afloat?

[serrano2008]

66. Good grief - calm down people - this isn't all about YOU and Poor people

90% of the work force STILL have jobs and probably will still have them in the near future.

I think this is a great plan and has definitely got my wife and I looking to put our house back on the market so we can get a big tax credit on our new house. Hooray for something in the Stimulus Plan that actually affects ME ME ME!!!

[JayMusgrove]

68. Exactly! The housing market needs SOME people buying houses

Not poor people, not rich people who don't need the tax cut, but those who actually want to buy and can afford to buy.

No, it may not affect everybody. It will affect those who would buy a primary residence and can afford to do so. That, alone, will help to stabilize and not to over-inflate the market with a flood of speculative buyers.

It is not a panacea, but it is a rung on the ladder to greater stability in the housing market.

[sarcasmo]

81. If you think 90% of the workforce still have jobs you are out of touch with reality.

[Psephos]

100. US unemployment rate is 7.6% in the latest figures

http://www.latimes.com/business/la-fi-jobs7-2009feb07,0,153859.story

http://www.bls.gov/news.release/empsit.nr0.htm

About 4.1 million people have lost their job since December 2007. The number of long-term unemployed (people who have been jobless for 27 weeks or more)
has changed very little and was at 2.6 million in January 2009. Current US employment is 142 million.

Read the above BLS link for a full breakdown of how the unemployment figures are calculated.

The Bureau of Labor Statistics website is a must-read for anyone interested in the labor picture here.

http://www.bls.gov/

[Zhade]

92. Wow - fuck the poor as long as you get yours?

You're a heartless fucking asshole.

[blue_onyx]

72. I hope this helps the housing market

We have a condo for sale and there has been some interest in the year it's been on the market. One of the problems is that people can't sell their homes. Hopefully, with prices for homes being lower, the tax break will give people who are thinking of buying the extra push to buy.

[slackmaster]

74. As someone who works in the industry, I have to say this is stupid

The housing industry revitalize itself when prices are down and people have jobs. Tinkering with tax credits isn't going to help.

[serrano2008]

75. Both agree and disagree

They're getting a lot of slack for most of their programs not working quickly enough, hell they have 18 months to get some of this stuff *started*.

They're going to get a lot of people out there buying houses with this...10% back for your house purchase is A LOT of money that those of us WITH jobs can't pass up. Prices are already down, now take another 10% off of that. NOW is the time to move people!

[bottomtheweaver]

94. Gee, a tax break for investors that will help also help banks and brokers.

Great idea, not. Another THANK GOD IT PASSED moment brought to you by the Dem Senate.

[AyanRand Is Dead]

95. Unfortunately this will only increase the price of homes, again.

I'm sure many sellers will just take the opportunity to increase their selling price by 15k now.

[closeupready]

99. Of course it will, just as the mortgage interest deduction does.

It's a handout to the real estate industry.

[Psephos]

101. Seems more like a handout to homeowners to me

which doesn't seem like the worst thing I've ever heard of

[Thickasabrick]

105. Does this apply to refinances?? nt

[DirtFrmr]

107. Easy money got us into this...

And easier money will get us out! :eyes:

[krabigirl]

109. What's the income limit? The last proposed credit didn't apply to many people in California.

(where $100K is not the same as it is in Peoria, etc.)

[spooky3]

112. there isn't one on the current version - not sure what will happen on the conference version

[Tashca]

110. Trying to stop the housing price slide

This reminds me of the bills passed during the farm crisis in the 80's. The bills were never about saving the family farm as they were advertised. They were simply banking bills. Banks were losing huge amounts of money and many were nearly insolvent. The money was pumped in through the farm economy to stop the downward spiral and put a bottom in land prices.

This appears to be the same type of thing....stop the slide downward.

Banks are sitting on huge numbers of foreclosed properties. They can't loan as much money if they are owning homes. To me this is the way to try and shed the banks of the houses. Maybe put a bottom in the slide and help people feel like buying again.

This could be a good opportunity to buy for some people.....certainly not all.

[Romulox]

111. Sounds like a subsidy to Pulte homes et al. nt