Here comes Congress!
So far, I’ve been less than impressed by proposals being floated by Congress to aid the housing market. I totally supported bailing out Bear Stearns because, based on what I read, it seemed like a good move – hey, and it’s a loan, people, not a gift!
Anyway, one of the newer proposals is a $8,000 tax credit for first-time homebuyers.
The House proposal would create a temporary tax credit of as much as $8,000 for first-time buyers and increase tax credits for investors in low-income housing. It would create a standard deduction for property taxes, aiding those who don’t itemize on their federal returns. And it would expand the authority of state and local housing finance agencies to use tax-exempt bonds to refinance troubled mortgages.
Is this necessary?
I don’t care much with messing with the tax code by allowing people to deduct property taxes on their federal tax return, but there, at least, there’s a reason to be made for doing so – it isn’t fair that you can only deduct these taxes if you itemize. (Of course, whether or not anyone should be allowed to deduct property taxes and/or interest on their home loans is another question, completely!)
I guess it’s just the cynic in me that sees these efforts as nothing more than posturing. Well, even if the legislators had good intentions in mind, it doesn’t mean the ideas are worthy.
Source: Dems to Propose Housing Tax Breaks – By Lori Montgomery, The Washington Post, by way of Realtor.org