Isn’t it nice that we are being taken care of? Haven’t you heard about the tax credit for new home purchases that is being “given” to us by our generous leaders? If you purchase a new home you are going to get a tax credit of up to $7,500-. This is great. A stimulus to our economy. A boost to our dropping home prices and sagging housing industry. Why didn’t they think of this sooner? What else could they do to help out the poor consumer suffering from higher costs and economic turmoil? How about interest free loans?
Wait a minute!
What about allowing us to not pay income taxes for a year to make it seem like we have more money to spend and them making us pay it back over a 15-year period. This would be a great short-term fix to stimulate the economy. If this was an interest free loan tied to a major purchase transaction, like a home, it would really help to heat up the economy. We all know that our economy is based on consumer spending. Heck, maybe the tax credit could be used to help people buy a new car, (great way to make money, purchasing a depreciating asset). What if we actually gave people more cash than they actually owed in taxes? We could tie it to the purchase to get them to spend even more money!
This sounds great, doesn’t it?
Guess what: Our highly paid professionals running the country have come up with a plan that will allow us to do all of this!
H.R. 3221 - The housing and Economic Recovery Act of 2008.
This will allow homebuyers to get into even more debt. An extra $500- per year in payments over the next 15-years for those who are lucky enough to take advantage of this program.
Used conservatively this could actually help some buyers out. Most though will fall to the temptation of spending it and find themselves owing an extra $500- in income tax every year for the next 15 years.
The Loan Master says,” Buyer Beware on this one”.
Sincerely,
The Loan Master.