The bill approved by the senate last week was ostensibly aimed at providing relief to the sagging real estate market. We can debate the pros and cons of such a plan, but I don't think there's much argument about how dumb some of the stuff that ended up in this bill is: tax breaks for automakers, airlines, and alternative energy producers.
What do tax breaks for car companies have to do with the Foreclosure Prevention Act? I can't even imagine. Perhaps lower car prices will help out evicted home owners reduced to shacking up in their Kia Rios.
The New York Times reports that the pork tossed into the housing bill "shows how legislation with a populist imperative offers a chance for lobbyists to press their clients' interests."
The most bizarre part of this mess is the fact that big tax breaks were given to homebuilders. But why? Given the glut of homes on the market, do we really need to be using taxpayer money to support an industry that has overproduced badly? Color me naive, but I thought that point of tax breaks was to encourage activity in industries that weren't producing enough, not to encourage production in industries that are overproducing.
In any case, it's an election year, meaning that our elected officials have a strong incentive to push through a bill that "helps distressed homeowners."
Crazy tax breaks in the housing bill go to automakers, housebuilders
Related Posts
- Houses lose value for 7th straight quarter, where is the help? (8 days ago - 9 Comments)
- Mortgage applications inch higher last week (7 days ago - 1 Comments)
- $125 billion for banker bonuses, nothing for 765,558 foreclosure victims (28 days ago - 11 Comments)
- Second stimulus check gains momentum on Bernanke testimony (30 days ago - 7 Comments)
- Ending home foreclosure rise seen as one key factor in stabilizing financial system (34 days ago - 2 Comments)
Collectible Investments: 100-year old $20 gold piece up 65% in past five years
Best Buy (BBY) may end up getting a lump of coal in its stocking
Closing Bell: Dow closes below 8,000; C, ETFC, FNM, GM, LVLT, YHOO all got hammered
Reader Comments (Page 1 of 1)
4-16-2008 @ 4:34PM
Sick of All of Them! said...
Ummm, who sponsored this Bill? I guarantee it was a Democrat or group of Democrats. Add Ons are like fleas on a dog, they are always there, especially when a Democrat get his/her slimey hands on it. This Bill should do one thing and one thing only, allow people in ARM's to refinance their home into a fixed rate. The banks may lose money because of depreciating values, but it's sure better then what happens when a home is foreclosed upon. These add on's are just the type of the iceberg after the November elections. These slimey, greasy, scummy politicians just can't wait to add more of your money and my money on to their pork projects.
Almost 16 years after the Contract with America, GOVERNMENT is still the major source of pain and suffering in this country. It doesn't matter which party is in office, they are all thieves and liars.
4-16-2008 @ 4:56PM
42 said...
Zac, yeah, I get it, it sucks, but name me any bill that isn't stuffed full of earmarks and pork and lobbyist-written law from both Dems and Reps. They're all pretty much the same anyway.
4-16-2008 @ 7:56PM
bob said...
This is why Bush has to use the veto. If demos really tried to help those that really need it, he wouldn't have to. Incidentally, repubs have never stacked the pork on like demos. That can be proven.
4-17-2008 @ 5:16AM
Nick Schatz said...
In Maryland the Dems are doing a lot to protect the homeowners in foreclosure. Governor O’Malley just passed a law that moves the timetable of foreclosures from 15 days to 150 days. As far as the pork on this bill I’m not aware of any. A lot of times what happens at the state and city level has a greater impact on us then the fed bills. Governor O’Malley is also considering a bill that will require people to go through credit counseling before applying for sub-prime loans.
As far as the tax break for the homebuilders ….. I know there are pockets of growth around the country. BRAC (Base Closure and Realignment Commission) is moving into the Aberdeen Maryland area and there will be 5000 jobs moving to the Aberdeen proving grounds. They don’t have the infrastructure for all of these jobs so I’m sure there will be a housing boom there.
Also this recession may be quick….I know most people don’t agree but if there are tax breaks for homebuilders and the economy rebounds in 2009 this bill may help the homebuilders rebound quickly.
Just a few thoughts…
http://www.WeBuyHousesInBaltimore.com