Yesterday (November 4th), the Senate passed legislation to extend and expand the home buyer tax credit. The $8,000 first time home buyer tax credit continues; AND adding a “move up” buyer tax credit of $6,500 (both to sunset April 30, 2010). The new legislation is certainly going to continue helping first time home buyers, as well as helping many move up home buyers who are struggling with their own liquidity. http://isakson.senate.gov/press/2009/110409hbtc.htm
Surely, many home buyers will take advantage of the tax credit to assist them in
their purchases. Although there is a direct and immediate effect of the home buyer credit, many continue to debate its affects. The following articles offer interesting commentary and insight as to why the home buyer tax credit may be poor policy:“The home-buyer tax credit: Throwing good money after bad”
By Simon Johnson and James Kwak
http://www.washingtonpost.com/wp-dyn/content/article/2009/10/27/AR2009102703791.html
“Why the Home Buyer Tax Credit Is a Bad Idea”
By Tim Iacono
http://seekingalpha.com/article/168270-why-the-home-buyer-tax-credit-is-a-bad-idea
“Extending and Expanding the Homebuyer Tax Credit Is a Bad Idea”
Ted Gayer, Co-Director, Economic Studies
The Brookings Institution
http://www.brookings.edu/opinions/2009/1009_homebuyer_gayer.asp
“Home-Buyer Credit Tempts Tax Cheats”
By MARTIN VAUGHAN and JOHN D. MCKINNON
http://online.wsj.com/article/SB125622884824101553.html
0 comments:
Post a Comment