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ECONOMISTS ENCOURAGE TAX CREDIT EXTENSION
(New York Times Online, Sept 15, 2009)
When Congress passed an $8,000 tax credit for first-time home buyers last winter, it was intended as a dose of shock therapy during a crisis. Now the question is becoming whether the housing market can function without it.
As many as 40 percent of all home buyers this year will qualify for the credit. It is on track to cost the government $15 billion, more than twice the amount that was projected when Congress passed the stimulus bill in February.
In the view of the real estate industry and some economists, all that money is well spent. They contend the credit is doing what it was meant to do, encouraging a recovery in the housing market that is gathering steam. Analysts say the credit is directly responsible for several hundred thousand home sales.
Skeptics argue that most of the money is going to people who would have bought a home anyway. And they contend that unless it is allowed to expire on schedule in late November, the tax credit is likely to become one more expensive government program that refuses to die.
The real estate industry, including the powerful 1.1 million-member National Association of REALTORS®, wants Congress to extend the credit at least through next summer. The group hopes to expand the program to $15,000 and to allow all buyers, not just those who have been out of the market
I think the $8000 First Time Homebuyer Tax Credit is and has been a wonderful thing! It has absolutely stimulated the economy keeping Realtors, stagers, home inspectors, appraisers, title companies, loan officers, lenders, roofers, construction people, insurance agents, lawn services, painters, Menards, Home Depots, etc., etc., etc., in business. A limited extension of the credit will continue to stimulate the economy and, in my humble opinion, is well worth the cost of the program.
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