The government is actively looking into passing a bill which would give a first time home buyer a break and reward them with a 15000 dollar tax credit.
Now there are portions of the bill that I am actually quite thrilled with, like tax cuts and breaks to the little man. (The top earners who make insane amount of money in bonuses ought to be dealt harshly). But there are certain provisions which I find incredulous. I mean what in the world were those guys smoking to actually pass the bill with that clause.
The reason I say this, this is not a new strategy of giving a buyer a tax credit. Same credit was given way back in 2008 but it had little or no effect. Reason being it had to be paid off, so it was nothing more than a long term loan. So one would think that the senate would recognize its ineffectiveness this time around.
Now the bill still has to be finalized and approved by the president and my top dollar would be that the amount of tax credit would be reduced.
Some salient feature of the bill are:
1.Â Increased tax credit from $7,500 up to $15,000.
2.Â It will not have to be repaid unless home is sold within 24 months of the purchase price.
3.Â It is for everyone that purchases a primary dwelling, whether they are a first time home buyer or not.
4.Â It will extend the tax credit from July 1, 2009 to September 1, 2009.
5.Â It will take affect the day the President signs the bill.
What do you think about it? Have your say below.