Home » Politics, Real Estate

Homebuyer Tax Credit Extended (Again)

2 July 2010 5 Comments

Yep, the popular program which allows us taxpayers to pay for people to buy homes has been extended for a second time.  Apparently, the post-rebate housing data freaked out the politicians so they extended the measure – with both Republican & Democrat support.

Apparently, only a handful of these morons understand that this will not prevent housing from moving towards its true market-oriented equilibrium levels – it will only delay it.  Senator DeMint from South Carolina understands this, and he tried to block the extension:

“We only created a bubble, which will eventually burst,” DeMint said on the Senate floor late yesterday as the deadline was about to expire. “For the people who haven’t closed on their homes by today, it’s not that they won’t get their house, only that they won’t get a taxpayer subsidy for having bought a house now rather than later.”

The reality is that with each extension of this program, the effectiveness will be smaller and smaller – it’s similar to a drug addict who requires an increased dose each time he shoots up because the same dosage just doesn’t provide the same boost.

To be clear, this only applies to those who had signed a purchase agreement before the previous deadline but failed to close on the house.  They will now have until September to close.  As housing numbers continue to be terrible, I expect even more extensions and further incentives to “fix housing”


  • ER Extreme said:

    The problem is that the only tool politicians have (other than being inspiring, but how can you do that when you're leading from behind the poll numbers) is to take money from one group of people and hand it over to others.

    So that's what they do.

  • Jenny said:

    Senator DeMint says no to everything except big tax cuts for the wealthy. Ronald Reagan grew the deficit 189 percent; George H. W. Bush grew it 55 percent, Clinton grew it 36 percent, Carter grew it 46 percent and George W. Bush grew it 89 percent. Bush senior called tax cuts for the wealthy voodoo economics, but that's what the republicans want now — tax cuts kept in place for the rich and they don't care about funding the cut because it will "pay for itself." I think, beginning with Reagan, we can prove with hard figures that it doesn't. I hope this article was not meant to be bipartisan beause if it was, you didn't achieve your goal.

  • 20smoney said:

    Did you see what I said here: "Apparently, the post-rebate housing data freaked out the politicians so they extended the measure – with both Republican & Democrat support."

    I never once singled out Democrats.

    I agree with you on the deficit stuff. Republicans have been just as bad and in some cases worse. I'm not for the Republicans. I'm for anybody who is willing to stop this nonsense.

    You didn't even address the homebuyer tax credit because you were too focused on your anti-Republican rant. I'd love to hear a response from you but I'm pretty confident I won't get one.

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