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Wednesday, November 4, 2009
Housing Tax Credit?
So here's what I want to know: who thinks this $8,000 tax credit is a good idea? At best, it's a sop to new homebuyers. Ack, it's just a terrible idea.
A republican against a tax credit, I may buy my Saturday brat from the student GOP stand to mark the occasion.
From the analysis in the press I have no idea what worked and what didnt in the stimulus package (I know University research benefited greatly, what that means for the country can be debated). However, I thought this credit was seen by most to have increased first time homebuyers sales, stabilized housing prices, and was a boon to mortgage lenders with large increases in business. Add to that the fact that every one of those families need to go to Lowes to buy rakes, brooms, lawnmower, paint, carpeting, JCPenny paintings, votive candles, water softner and salt, sojfjrffl ..... ..............................................................................................................................................
If the current bill passes as is it will allow people in homes greater than five years to get a similar credit, more than enough to cover the costs of closing another house. Seems better than sop to me. Your concerns...
Water softener? You mean you don't use magnets to remove the negative ions from your water?
So I get the Keynesian idea of stimulus: private citizens have (for whatever reason) stopped spending money, so the government steps in. To a certain extent, it doesn't even matter what the government spends money on, as long as they're spending money.
Presumably, NSF/NIH money has multiple short- and long-term positive implications. Even Cash for Clunkers (which I'm not for) is, in its ideal form, a good idea, i.e. lowering CO2 emissions.
I am unconvinced that more home buying is a good thing - isn't that part of what got us into this mess in the first place?
But the details are not encouraging, according to this NYT article. It's just shifting demand from the future to the present. It also appears to get getting more people into trouble, just like before.
I'm not sure that I have a better idea*, since we're basically attempting to mash our fingers on all possible economic buttons. But this appears to be to be both expensive and something that we've tried before with poor results.
One more thing: if I see that REMAX commercial with the Realtor telling me "now is a great time to buy a home", I'm going to shoot my television. Who's it good for, lady, me or you?
*But wait, I do: how about transit funding? Or defense R&D? Or space programs?
I was never a big fan of this. Like the bailout, cash for clunkers, and parts of the stimulus, it isn't paid for and ultimately kicks the can down the road a little further.
To Jim's point, I have a hard time believing $8K miraculously made these homes affordable to people. Especially for homes on the East and West coast.
Ultimately, unless the jobless start finding jobs, this credit is only a bandaid when the cut needs stitches.
4 comments:
A republican against a tax credit, I may buy my Saturday brat from the student GOP stand to mark the occasion.
From the analysis in the press I have no idea what worked and what didnt in the stimulus package (I know University research benefited greatly, what that means for the country can be debated). However, I thought this credit was seen by most to have increased first time homebuyers sales, stabilized housing prices, and was a boon to mortgage lenders with large increases in business. Add to that the fact that every one of those families need to go to Lowes to buy rakes, brooms, lawnmower, paint, carpeting, JCPenny paintings, votive candles, water softner and salt, sojfjrffl .....
..............................................................................................................................................
If the current bill passes as is it will allow people in homes greater than five years to get a similar credit, more than enough to cover the costs of closing another house. Seems better than sop to me. Your concerns...
Water softener? You mean you don't use magnets to remove the negative ions from your water?
So I get the Keynesian idea of stimulus: private citizens have (for whatever reason) stopped spending money, so the government steps in. To a certain extent, it doesn't even matter what the government spends money on, as long as they're spending money.
Presumably, NSF/NIH money has multiple short- and long-term positive implications. Even Cash for Clunkers (which I'm not for) is, in its ideal form, a good idea, i.e. lowering CO2 emissions.
I am unconvinced that more home buying is a good thing - isn't that part of what got us into this mess in the first place?
But the details are not encouraging, according to this NYT article. It's just shifting demand from the future to the present. It also appears to get getting more people into trouble, just like before.
I'm not sure that I have a better idea*, since we're basically attempting to mash our fingers on all possible economic buttons. But this appears to be to be both expensive and something that we've tried before with poor results.
One more thing: if I see that REMAX commercial with the Realtor telling me "now is a great time to buy a home", I'm going to shoot my television. Who's it good for, lady, me or you?
*But wait, I do: how about transit funding? Or defense R&D? Or space programs?
I guess if you believe that an important part of the recovery is individual confidence condensing future purchases to the present might be beneficial.
Based on what I have learned from "my mentors" defense and space spending would not be considered appropriate reparations.
According to Ditech I can refinance at an historically low rate (that term seems to used whether it was 4.5 or 6.5).
I was never a big fan of this. Like the bailout, cash for clunkers, and parts of the stimulus, it isn't paid for and ultimately kicks the can down the road a little further.
To Jim's point, I have a hard time believing $8K miraculously made these homes affordable to people. Especially for homes on the East and West coast.
Ultimately, unless the jobless start finding jobs, this credit is only a bandaid when the cut needs stitches.
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