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Old 02-12-2009, 12:32 PM
 
1,134 posts, read 2,472,313 times
Reputation: 481

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Quote:
Originally Posted by Bill Keegan View Post
I was only able to get through seven pages of posts on tis thread before I was just about nuts with amazement. Why is it that so many people see this tax credit as a gift of some sort? As a handout of money to you from the government? IT'S YOUR MONEY! This bill simply says that buying a house will reduce your obligation to pay some of YOUR MONEY to the government. Stop acting grateful that the government is letting you keep something that's already yours, and say it's about time the government stopped taking every penny they can grab of YOUR MONEY. This is simply a reduction in taxes! (Which by the way, is what conservatives have been saying FOR YEARS is the best way to stimulate the economy.)
Not exactly.

Though it is technically a tax cut, its a cut dependant on buying something the government wants you to buy. Sort of like liberals giving you a slight reduction in your taxes for buying a hybrid.

Ordinary tax cuts wouldn't do much to help the current economy because everyone is in SAVE mode (and making payments on debt - say credit cards). Low taxes are best for the long term, but they are inefficient at providing stimulus during severe downturns. While the economy is shedding jobs, people will not go spend-happy.

This is why increased gov spending that creates jobs should be the first pillar of any stimulus in a severe recession.

The conservative mantra that tax cuts are always best simply isn't true.
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Old 02-12-2009, 12:39 PM
 
87 posts, read 348,096 times
Reputation: 35
More info on the $8000 tax -- details still not finalized about who qualifies -

http://www.associatedcontent.com/art...mic.html?cat=3
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Old 02-12-2009, 12:48 PM
 
1,134 posts, read 2,472,313 times
Reputation: 481
Quote:
Originally Posted by aneftp View Post
What "change" have you made, President Obama?
Obama's plan includes a LOT of ideas included from consultation with REPUBLICANS, and yet Republicans STILL oppose it. It's they who are being the ideological sticks in the mud. You blame this on Obama despite his upfront willingness to compromise from day one? ABSURD. IMO, this is an example of Obama giving an inch and Republicans demanding a mile.

Republicans oppose this bill because of its size and ideological opposition to government spending period - despite the fact that most Democrats and I'd argue most economists would say the bill is already too small to have a decisive impact. REMEMBER this when later we're coming back to the well for another stimulus!!

It's about JOBS. As long as jobs are being shed, and remain insecure, tax cuts are inefficient stimulus. People WILL save and pay debt first. Spending that goes to someone's new job goes to ordinary living expenses first; its SPENT. It has the added bonus of saving some of those who are about to lose their homes to foreclosure due to unemployment (further burying us in this foreclosure mess). Even better, the money is going toward things that have PROVEN long term benefits to the economy - infrastructure (anyone else remember all those poorly maintained bridges collapsing not too long ago?).

The government must create/maintain jobs, restore stability and confidence FIRST. That Republicans got a heap of tax cuts to boot is an inefficient carrot, despite which they're still being the party of "no".

Last edited by DvlsAdvc8; 02-12-2009 at 01:17 PM..
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Old 02-12-2009, 02:32 PM
SXN
 
350 posts, read 1,087,306 times
Reputation: 280
Quote:
Originally Posted by Fant View Post
I heard its back down to $7500 and its restricted to first time home buyers only. Unsure if the other restrictions such as income have been lifted. Can anyone confirm whether is this:

1) $7500 tax credit meaning your AGI is reduced by $7500
or
2) $7500 tax credit meaning your total taxes owed is reduced by $7500
Latest reports it's now an $8,000 tax refund for first time homebuyers. Stay tuned...
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Old 02-12-2009, 03:25 PM
 
Location: SE Michigan
1,213 posts, read 4,246,195 times
Reputation: 674
why just first time homebuyers?

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Old 02-12-2009, 03:34 PM
 
162 posts, read 473,883 times
Reputation: 78
PERFECT!!! Relator just sent our signed/accepted contract, closing on/before March 26!

Look forward to my check come April 2009, gonna re-do the kitchen!!
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Old 02-12-2009, 03:35 PM
 
Location: Castle Hills
1,129 posts, read 2,287,147 times
Reputation: 605
Quote:
Originally Posted by kcam213 View Post
why just first time homebuyers?


First time means you couldnt have owned a home within the last 3 years. Thats what defines a first time home buyer for the $7500 tax credit. So if its been more than 3 years since you owned a home, you would qualify.
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Old 02-12-2009, 03:47 PM
 
Location: Ocean County, NJ
228 posts, read 1,009,525 times
Reputation: 110
Well, 8 thousand is better than 0 thousand.
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Old 02-12-2009, 04:10 PM
 
Location: Houston
529 posts, read 1,141,823 times
Reputation: 373
Quote:
Originally Posted by kcam213 View Post
why just first time homebuyers?

I think the rationale is that when a FTHB buys a starter home that usually means that the seller will be able to upgrade to another home and so on making a snowball effect. Obviously this doesn't always happen since when the FTHB buys a new development, or buys from someone who takes the cash and puts it somewhere else besides real state the chain is broken.
IMHO the number of FTHB that are willing and able to buy a home this next year are not enough to make a dent in the falling market but I'm not an expert.
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Old 02-12-2009, 04:35 PM
 
87 posts, read 348,096 times
Reputation: 35
dbean: if this thing gets passed, its for homes purchased this year which would affect your 2009 tax return for which the refund you wouldnt get until sometime in 2010 isnt that correct?
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