Review of new houses for sales::How Can I Find Foreclosed Homes or Homes for Sale from ...
Review of new houses for sales::How Can I Find Foreclosed Homes or Homes for Sale from ...
The Senate is expected to vote as early as today on its version of the $820 billion economic stimulus package passed by the House of Representatives last week, after adding provisions including a $15,000 home buyer's tax credit at a cost of $18.5 billion to the American taxpayer. The home buyer tax credit was sought by Republican lawmakers who claim it will address a root cause of the recession, the stagnant housing market. The home buyer tax credit follows after Tuesday's addition of a retroactive new car buyer's tax credit to the stimulus bill at a cost of $11 billion. The new car buyer's credit would allow tax deducations for sales tax and loan interest on new car purchases from November 12. 2008 to December 31, 2009. With new foreclosures on homes occuring every 13 seconds, the Senate aims to fix the housing crisis by spending $18.5 billion on a home buyer tax credit to encourage home buying when Americans can't afford to pay the mortgages on homes they already own? The Mortgage Bankers Association is projecting 2.4 million new foreclosures in 2009; 237,000 foreclosures have occurred since January 1 alone. How is encouraging more home buying by offering a $15,000 home buyer tax credit going to help those Americans in danger of losing their homes and those who have lost their homes? Is it sensible to encourage more home buying in the face of record mortgage defaults? Americans are also being laid off in record numbers, with 1.9 million Americans having been laid off in the last quarter of 2008 and 75,000 more put out of work in the last few days. These are the people the Senate thinks are going to rush out to buy a new car to take advantage of the $11 billion new car buyer's credit or a new home with the lure of a $15,000 home buyer tax credit? Economists question the efficacy of the home buyer tax credit and new car buyer's tax credit provisions, noting that loan access barriers may preclude consumers from buying homes and cars, according to the New York Times. Instead of relying on tired old strategies pushed by greedy lobbyists, why not spend a few thousand of that $29.5 billion to offer contest prizes to anyone who can think up a more effective approach? Just think how many people could be spared foreclosure if the $18.5 billion slated for a home buyer's tax credit were spent instead on direct payments to home owners to forestall foreclosures? Sources: http://www.nytimes.com/2009/02/05/us/politics/05stimulus.html?hp; http://blogs.wsj.com/developments/2009/02/05/economists-skeptical-of-home-buyer-incentives-in-stimulus-bill/; http://www.nytimes.com/2009/02/04/us/politics/04stimulus.html?ref=politics; http://americanpowerblog.blogspot.com/2009/01/public-prefers-spending-over-tax-cuts.html |
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