Negotiators cut out $15,000 home buyer tax credit

[creeksneakers2]

http://www.google.com/hostednews/ap/article/ALeqM5gdDrWnoMueqVFI-Uo1ClxVZur22AD969LR300

Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said. The agreement would allow taxpayers to deduct the sales tax paid on new car purchases, but not the interest on loans for the same vehicles.

Out of $2 trillion worth of stimuli they cut out the $19 billion that would have re sparked the housing market, which is supposedly at the center of all the trouble. The money was put in the bill on an unanimous Senate vote. I was so hoping to be able to buy a house.

I'm mad. I hope the whole bill fails to pass now.

[Pavulon]

1. I have a house I was hoping to sell

seems we both just got the shaft.

[Barack_America]

2. Apparently the Senate version had a "no rebate" clause...

...so unless you pay $15,000 a year in taxes to the federal govt., you weren't standing to get that much anyway.

As a result, it wasn't going to help the people who needed it most (and was going to help the rich). So, even though it made me consider buying a house, I'm not too sad to see it go.

[creeksneakers2]

10. It shouldn't

but that makes me feel better. I guess what I thought it was was too good to be true.

[Fire_Medic_Dave]

19. I thought it was based on the value of the home.

To get the full $15,000 the value of the home had to be $150,000 or more. I read that here somewhere. So a $100,000 home would get a rebate of $10,000 etc. Maybe I was misreading though.

David

[Schema Thing]

20. :ahem: One word: republicans

[jimshoes]

3. I'm starting to get the feeling that

the only people this is going to help are the ones that have been helping themselves to our money all along. Me and you and the rest of the little people get bent over again.

[Loge23]

4. Insane.

So the bill is sham as many of us strongly suspected.
I read on Financial Sense (admittedly, not always an accurate read) that 5% of the bill actually contains infrastructure funding.
Nice.
When does the band start to play Nearer My God to Thee?

[Cronus Protagonist]

5. Well, the up side is anyone buying a house right now is going to make out like a bandit

When the prices go back up. They're getting in at the bottom of the market, and they're not in financial trouble either, or they wouldn't be able to buy at all.

[MarjorieG]

6. Room for abuse. Families swapping homes, etc., but not.

[The Velveteen Ocelot]

7. I'm not sure it would have helped that many people...

You can't buy a house if you don't have a job. And even if you do have a job, it's a lot harder to get a mortgage now, and lenders are looking for 20% down payments these days. Also, that $15,000 is a tax credit, meaning that if you don't pay $15,000 in federal taxes, you won't get a $15,000 credit. It won't be cash to buy a house with -- just a tax credit.

[Zenlitened]

8. Bloomberg says it was reduced to $8000, not cut entirely

They quote Senate Finance Committee Chairman Max Baucus (D-Montana).

"... A proposed $15,000 tax credit for homebuyers was reduced to $8,000, Baucus said. ..."

http://www.bloomberg.com/apps/news?pid=20601087&sid=aiM_rr98lSVk&refer=home

[itsrobert]

11. I wish they regionalized this tax credit

$8,000 goes along way in Arkansas and El Paso, TX, Missouri, etc, but doesn't do too much for Southern California, etc.

[TexasObserver]

9. It was a truly bad idea.

Lenders are not loaning money for new houses except to people who have the cash flow to buy them, and even then, the standards are much higher than any time this century.

[terisan]

12. One could have divided tax credit over 2 years-so it would have helped a lot of people.

Perhaps it will go into bailout bill to get support for passing bank welfare.

[TahitiNut]

13. The last thing we need is another "housing bubble".

It WASN'T targeted towards first-time home buyers and it WASN'T targeted towards existing homes. Further, it benefitted (employed) folks with (continuing) houshold incomes of over $85K/year ... NOT the working poor and unemployed.

[AyanRand Is Dead]

23. Huh?

Further, it benefitted (employed) folks with (continuing) houshold incomes of over $85K/year ...

I don't see anyhting wrong with that, they kicked into the system too.

[TahitiNut]

24. Well, then you probably need glasses

... or a leader dog. :eyes:

[AyanRand Is Dead]

28. People that make 85k +

Don't pay taxes? They don't contribute? Are you feiging being offended or do you have some other problem?

[NutmegYankee]

29. There are single people in New England making 70-80k a year living in studio apts.

Some regions pay more because they cost more.

[2Design]

14. this would have sparked speculators again and reinflate the housing bubble

yes it looked good on the surface but was not limited to first time buyers - and by allowing any buyers who sold out three years or more ago who are now renting waiting for the housing bubble to drop - they could have jumped in and realtors would have reinflated the prices as well as the banks - this would have caused more trouble

[WorseBeforeBetter]

15. A "sparked" housing market is one of the biggest reasons we're in this mess to begin with.

You want the entire bill to fail since you can't buy a house? Niiiice.

[creeksneakers2]

17. The rest of it is mostly a bad idea

It borrows too much money out of the investment pool that would be taking care of economic problems if left with no other alternative.

[Occulus]

26. The stimulus bill is a bad idea?

What?

[Cerridwen]

16. "I'm mad. I hope the whole bill fails to pass now."

Hmmm.

[question everything]

18. Good. This was a bad idea

First, any potential buyers would have just sat for a while, waiting for the bill to pass. Meanwhile suspending closing. Also, one could see speculators increasing the price of a house by $15K. And then, what about others who are not in the market, but are struggling to pay their mortgages?

[xchrom]

21. i want to sell, move and buy else where --

i was hoping this would stay in.

now i'll wait.

[AyanRand Is Dead]

22. Fine this would've only benefitted a few select people anyways.

So what happened to the government providing 4% loans? Now that would be much more stimulating.

[ozu]

25. It may have benefitted me

I was on the fence about buying now since I don't think the bottom has been hit. But without the incentive, I'll just wait and see where the prices go before jumping in.

Meh.

[blue_onyx]

27. I hoped the housing stimulus would stay

We're trying to sell a condo and it would be nice if something was included to help people purchase homes. Oh well...

[ContinentalOp]

30. Good, it's a ridiculous idea.

We don't need to stimulate sales, we need to help people who are already in a mortgage. You know, those of us who were unfortunate enough to buy while prices were high. What about those 4% interest rates that were for some reason only being supported by Republicans? Where the hell is the help for the middle class? Hey, let's bail out the wealthiest of corporations and people who didn't make their mortgage payments but fuck everyone else. :mad: