The Tax Credit Vs. Cash for Clunkers
October 30, 2009 by Brian Summerfield · 5 Comments
Filed under: Economics, Mortgage Financing, Politics & Government
Filed under: Economics, Mortgage Financing, Politics & Government
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Terrific comparison Brian!
I totally agree that most people equate the two programs as having the same net benefit/loss. In fact, most people don’t understand that congress/senate arrived at $8000 for the first-time homebuyer tax credit for very good reasons… because $8000 is the average net benefit to the government through tax revenue arising from every home transaction – this includes (to name but a few) title companies, real estate copanies as well as ancillary service providers such as remodellers, etc who all pay taxes on their incomes.
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Jon Larrance
Perry & Co. Real Estate Professionals
Denver, CO
I think that the most important argument that Brian makes here is that “It’s essential that we have a healthy debate on this important subject rather than move forward with our eyes closed and our mouths shut.”
I do think that the article was written in support of the tax credit which even though it has contributed to a better year of selling real estate for me personally as a Realtor, the overall net effect of the credit isn’t worth the cost. I truly feel that artificial stimulus of this industry as well as any other will have severe consequences. When the tax credit does finally expire, the housing industry will self-correct once again.
Respectfully, Jason Merritt
Real Estate Broker
Hillsboro, Oregon
As mentioned in Realtor Magazine and Baltimore Sun, I think that this housing tax credit will be extended in the new year. I guess real estate has become similar to car sales. We both give incentives if you “buy-it now” and we both depreciate in value.