That $8,000 Tax Credit Actually Costs $43,000 For Every New Home Buyer

[Slim Shavings]

So you think your getting a break heh?? But your gonna pay through the nose in the back side. But lets have more government and more special programs to HELP people. Or maybe its all about putting more omoney in government coffers. This is how we got in this mess in the first place.

"Who is FICA and why do they need so much money" Jennifer Aniston on Friends when she got her first job.

That $8,000 Tax Credit Actually Costs $43,000 For Every New Home Buyer
John Carney|Sep. 23, 2009, 7:34 AM | 1,710 |15
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Tags: Regulation, Economy, Housing Crisis, Housing, Real Estate, Mortgages

The big tax break for first-time homebuyers might be good politics but it is terrible economics.

The $8,000 tax credit for first time homebuyers, enacted this year when Congress passed the $800 billion stimulus program, was meant to spur higher prices and new buying. But according to an estimate by the National Association of Realtors, of the 2 million new homebuyers since the credit was instituted, just 350,000 say they would not have bought a house without the tax break.



When the tax break expires at the end of November it is expected to have cost $15 billion, twice what Congress budgeted. To put that figure in perspective, the program will cost $43,000 for every new homebuyer who would not have bought a house without the tax break.

That $8,000 Tax Credit Actually Costs $43,000 For Every New Home Buyer

[Slim Shavings]

I'm sure everyone knows about Cash for clunkers. And how each of us are paying 24,000 for every car sold to somebody else in that program. Another way the government helps people out.

[booggs28]

The tax credit is going to be great for dead people and 4 yr olds. Extending it is such a wonderful idea. Stimulus at it's finest. up is down, right is left, and green is blue. Nothing makes sense anymore.