An Expensive Excuse Known As House Tax Credit
News | December 10, 2009 at 1:28 amWe all believe that the politicians and the congress are really doing something about the economic crises because we hear something about it everyday on the TV news.
However, their futile suggestions and ineffective ideas are helping to spawn new ways to splurge more funds than they actually have that wouldn’t help the non-worthy population.
We are not anywhere close to declare that the US is now out of the hazardous effects of the bubble that exploded few months ago. And look at what the government is trying to produce: Even bigger bubble.
Ok. You love Obama very much and you want to know why I am mauling the innovative ideas of the Fed. Let’s start with the foolishness of providing tax credit to first time home buyers. Firstly, it wasn’t required and you will know why before 
I conclude my arguments. Secondly, why the heck did they extend it? To encourage people to buy new homes; I know that. But do you know what will this result in?
More national liability. They allow people (first time buyers) to buy new home which will help them to save tax up to $40,000. And is it really helping? Firstly, people are very much capable to buy a new house because mortgages are now available easily. Secondly, this tax credit thing seems to be helping more to existing home owners than new buyers. What they do is simply transfer the home ownership from one person to other that anyway lived together. Hurray! The other person is now a first time home buyer with great tax benefits.
Ok. Consumers are really thankful and this tax credit seems to be helping their economic condition. But what is it doing to the country’s economic health? Due to this tax credit, government is losing huge amount of tax that it could have otherwise earned, which could further have been utilized to improve the infrastructure and stabilize the economy. Now, they are spending huge amount ($4 billion) for home buyers on which the country have to pay enormous interest which is definitely hampering economic growth.
I don’t really understand why President Obama (along with his team of silly advisors) fails to observe that any graduate (without any work experience) would have noticed. This is not what a president is supposed to do with a borrowed amount of around $14 billion. It’s a sheer worthless way to correct the market conditions or generate any employment opportunities. No, it’s not even helping a bit to increase the customer confidence. It’s just an excuse to create a delusion among people that you are performing your job.
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