Pelosi: Congress weighing whether to extend, expand $8k home buyer tax credit

Posted Oct 8th 2009 5:00PM by Joseph Lazzaro
Filed under: Housing, Recession

Perhaps the Democrats and Republicans can agree on one tactic capable of stimulating the U.S. economy: the $8,000 income tax credit for first-time home buyers.

House Speaker Nancy Pelosi, D-California, Thursday hinted that Congress is not only evaluating whether to extend the $8,000 tax credit for first-time home buyers past its November 30 deadline, but also is weighing whether to expand the program.

"There's under consideration whether we extend the first-time homeowners' credit," Pelosi told reporters today in Washington Thursday, Bloomberg News reported. "And the question is, would that be just first-time homeowners or would you open it up to other purchasers of homes?"

The National Association of Realtors is recommending that the $8,000 credit be extended into 2010, arguing that the credit is stimulating a significant amount of home sales.

"The credit is working," NAR Regional Vice President Joseph L. Canfora said, in a statement, noting that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. The additional buying activity also has provided an indirect benefit to local governments, bolstering property tax bases.

Housing Analysis: Congress should extend the $8,000 first-time home buyer tax credit through at least July 1, 2010. Even better: extend it through another summer selling season (when many families move, due to school not being in session): September 1, 2010. Ideally, Congress should open the program up to all primary-residence home purchases through July 1, 2010, although Congress may understandably balk at the latter, particularly if the Congressional Budget Office came back with a budget impact statement indicating a universal home buyer tax credit would increase the budget deficit by an unacceptable mount.

Minimally, Congress should extend the $8,000 first-time home buyer credit in tapered mounts: $8,000 for homes purchased before February 1, 2010; $6,000 before April 1, 2010; and $4,000 before July, 1, 2010.

The objective here is obvious enough: maintain and stimulate housing sector activity, amid a U.S. economy that needs all the demand pressure it can get.

Tags: featured, home buyer tax credit, Nancy Pelosi, tax credit

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Reader Comments (Page 1 of 1)

10-08-2009 @ 6:40PM

martialoffrance said...

and just where is this money coming from now? You dont make money when you sell so low you dont make profit!

10-08-2009 @ 7:11PM

rhyld said...

God, please save us from ourselves.

10-08-2009 @ 9:29PM

Bill said...

$8000 is an insult. The homes should be free. If the home is in a really nice neighborhood, GM should throw in a few Cadillacs. A crap car would only be embarrassing to the homeowner and the neighborhood. There should be some sort of income from the government so we don't have to engage in businesses that would be "less becoming" as some might say. This is easily affordable if we raise taxes on the rich. They can afford it. They are already paying most of the taxes anyway. So, lets go for it.

We may not be rich but we provide a service to the country that the rich FAIL to do. The rich have very few children. We make up for the FAILINGS of the rich by keeping the country properly populated.