Lawmakers seek to extend $8,000 tax credit

Source: Associated Press

Lawmakers are trying to extend and expand an $8,000 federal tax credit for first-time homebuyers, a stimulus-package tax break that many regard as a significant prop for the still-tottering economy.

The latest Senate proposal would drop the requirement that the credit be available only to first-time buyers, broadening the reach of the program but also adding to its cost, estimated by congressional analysts at $16.7 billion.

The backers of that idea, Sens. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., chairman of the Senate's banking committee, have suggested that their measure be attached to another pending bill aimed at throwing a lifeline to people hit by the recession, an extension of federal assistance to the millions in danger of exhausting unemployment insurance benefits.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5guZ2uxoyv-PmSFsGGANQP8oGSqmAD9BBOFUO2

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These assholes in Congress in both parties keep screwing around while people are DESPERATE. Forget the tax credit and put it on a separate bill instead of screwing over the unemployed.

it just opens it up for investors to buy properties, pretend to live there for some minimal period, and make a nice profit off the taxpayers twice (when you consider the effects of recapture of depreciation).

I guess the realtwhores are worried about losing some sales, they saw what happened to the auto market after cash for clunkers turned into a pumpkin.

It will screw first time homebuyers over. Investers will snap up anything remotely affordable. Not that they are not doing so anyway, but it will get worse.

will be left with the dregs after the investors are done.

For instance, an investor could buy a $100K home, get $8K right off their taxes, depreciate $5K to $10K off of it, quit making mortgage payments, and dump the thing back on the market for the $90K it was really worth, sucking a huge tax loss at that end of the transaction. It will do nothing to shore up the home values, but will just screw the economy even further, and provide a few more commissions to the housing sales industry.

I am having a lot of direct experience with the effects of investors grabbing anything that drops to a "reasonable" level. And thats without the benefit of an extra tax credit.

investors are already competing with 1st time buyers and bidding properties up and paying with cash - this does not need to be attached to some other bill - or it is more of the same crap

will most likely help only those who itemize their taxes, not to the 70 percent of taxpayers who take the standard deduction.

I get SO sick and tired of the Senate's stupid games. Pass that UI extension--NOW.