U.S. Senate lawmakers announced yesterday that they’re working on a bill to help homeowners facing foreclosure. Among the proposed measures – a $15,000 tax credit for people who buy foreclosed or newly built vacant homes.
If you look at this from a capitalist perspective this is a great idea – it will likely push people who were waffling on whether to buy a home or investment property to do it.
Of course a tax credit will not be enough to get people to buy homes in blighted neighborhoods. But it’s a start.
A $15,000 tax credit beats other tax credits like those available for educational expenses or for buying a hybrid car.
But I still wonder if it’s really the government’s job to get involved. Was a lack of government regulation responsible for unqualified home buyers buying homes? It was the mortgage companies not doing due diligence.
Is it the government’s job to jump start the housing market? Or is it merely delaying a further slowdown? At some point won’t the government run out of bandages?
April 2, 2008.