How the $8,000 Tax Credit Cost Home Buyers $15,000

Discussion in 'Politics' started by boedicca, May 12, 2011.

  1. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    The Further Adventures of Obamanomics!

    How the $8,000 Tax Credit Cost Home Buyers $15,000:

    The government's recent $8,000 cash incentive for first-time home buyers has proved even more costly for recipients than for taxpayers, according to data released Monday. Typical buyers have lost twice as much to price declines as they received from the program.

    The median home value fell to about $170,000 in March from $185,000 a year earlier, according to Zillow.com. That means a buyer who closed on a house just before the tax-credit program expired in April 2010 collected $8,000 but has since lost $15,000 in value. Those who bought earlier in the program have done worse; the median price is down $20,000 from March 2009.

    "The $8,000 first-time home buyers tax credit . . . has brought many new families into the housing market," the White House boasted in November 2009 upon announcing an extension and expansion of the program. Judging by sales declines since, that seems beyond doubt. Over the past year, the pace of existing home sales has fallen more than 6% and that of new home sales has fallen 22%.

    The credit wasn't great for taxpayers, either. IRS says it paid $26 billion in home buyer credits in 2009 and 2010, enough to cover the maximum $8,000 credit for more than 3 million buyers. (It says at least $513 million went for fraudulent claims. Some claimants hadn't bought houses. Some filed twice. Some were under age 18 or incarcerated.) ...


    How the $8,000 Tax Credit Cost Home Buyers $15,000 - SmartMoney.com


    How much more proof do Progressives need to see that their central planning, social engineering, Big Government policies always end up doing far more harm than good?
     
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  2. Charles_Main
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    Charles_Main AR15 Owner

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    I know I got it. My house Value was not high enough to get it all. Plus Ironically we were penalized because we did not have a mortgage and paid cash in full for the house. Think we got like a 2400 Credit. Each year since when we do our taxes we pay 177 Dollars of it back. must be 15 Years we have to pay it all back. But if you do the math were paying no more than we got. Not sure how that cost me anything. Sure as hell helped when I got it.
     
  3. JFK_USA
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    JFK_USA Gold Member

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    So? supply and demand is simple. Just like with the energy tax credit. But just like with cash for clunkers, it helps stimulate a segment of the economy. Huh funny how a stimulus works.
     
  4. edthecynic
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    edthecynic Censored for Cynicism

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    So it was "more harmful" to lose $15,000 than to lose $23,000 had they not gotten a tax rebate. :cuckoo:
     
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  5. Chris
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    Chris Gold Member

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    The tax credit saved the housing industry.

    Believe me, I know from personal experience.

    And the tax credit was the brainchild of Republican Senator Johnny Isakson of Georgia.

    But don't let the facts interfere with your mythology.
     
    Last edited: May 12, 2011
  6. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    Interesting that you post this today. I just got my latest property assessment from my county in the mail today and my property value has dropped yet again, for the second time in three years.
     
  7. Dont Taz Me Bro
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    Dont Taz Me Bro USMB Mod Staff Member Gold Supporting Member Supporting Member

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    There is no Senator named Johnny Atkinson.

    But don't let the facts interfere with your mythology.
     
  8. Zona
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    Zona A guy in ariZONA

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    Oh yeah...well, cash for clunkers didnt work either..look at the state of the automobile industry here.

    Oh wait....nevermind.
     
  9. Chris
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    Chris Gold Member

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    Sorry, Johnny Isakson. Been a long day...

    Johnny Isakson, US Senator
     
  10. Chris
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    Chris Gold Member

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    Good point.

    GM is doing quite well and is in line to be the number one auto company in the world again.

    Obama and Congress saved the economy with the bailout and the stimulus package.
     

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