Will Congress Extend Home buyer Tax Credit?
September 18, 2009 by Miranda Marquit
Filed under Finance
This just in: Congress is thinking about extending the first time home buyer tax credit. The program has proved rather successful in terms of encouraging home purchases, and now Congress is interested in possibly extending the program for another six months in order to give more people the chance to buy, and to further prop up the housing market.
Right now, the expiration date for the $8,000 first time home buyer tax credit is November 30, 2009. For most people, it’s reached a point where if you haven’t already submitted your mortgage application, you won’t make the deadline. However, if the deadline is extended, the new expiration date would be May 30, 2010. This is the only thing the bill would do.
This possible extension should not be confused with the new bill before Congress to offer a $15,000 tax credit to anyone who buys a home. Both bills, though, bring up interesting questions. First of all, would such measures to support the housing market create a state of dependency in which the housing market can’t survive without government help?
Another thought is that perhaps Congress might make home buying a permanent itemized tax deduction, much like mortgage interest already is.
What do you think? Should Congress extend more tax credits for home buying?
Image source: Gridge via Wikimedia Commons
As discussed, http://www.savingtoinvest.com/2009/02/15000-first-home-buyer-tax-credit-in.html , the the stabilization of the housing market due to the 2008 credit and unprecedented success of the extended cash for clunkers program has shown that stimulus payments that directly help consumers seem to have the most impact. This means that once Congress returns from their summer break the extension of the $8,000 tax credit for first-time buyers will be a hotly debated topic. There is a reasonable chance (particularly if the housing market falters again) that the credit will get a second life and be extended for another six to 12 months, taking pressure off buyers, realty agents and settlement companies.
I am a realtor so I love the tax credits for home buyers. It’s a short term fix that reaps much political benefits too. Unfortunately, if economic growth and the jobs situation are not addressed properly the housing market and the consumer will again falter. Band aids and bailouts do not fix underlying market issues.
YES I BELIEVE THAT THE CREDIT SHOULDBE EXTENDED,BECAUSE IT TOOK MANY PEOPLE A WHILE TO REALIZE THAT THERE WERE A FIRST TIME HOME BUYER CREDIT AVAILABLE