Senate approves $15,000 tax credit for homebuyers

[ProSense]

Senate approves $15,000 tax credit for homebuyers

By DAVID ESPO, Associated Press Writer

WASHINGTON – The Senate voted Wednesday night to give a tax break of up to $15,000 to homebuyers in hopes of revitalizing the housing industry, a victory for Republicans eager to leave their mark on a mammoth economic stimulus bill at the heart of President Barack Obama's recovery plan. The tax break was approved without dissent and came on a day in which Obama pushed back pointedly against Republican critics of the legislation even as he reached across party lines to consider a reduction in the spending it contains.

"Let's not make the perfect the enemy of the essential," Obama said as Senate Republicans stepped up their criticism of the bill's spending and pressed for additional tax cuts and relief for homeowners. He warned that failure to act quickly "will turn crisis into a catastrophe and guarantee a longer recession."

Democratic leaders have pledged to have legislation ready for Obama's signature by the end of next week.

While they concede privately they will have to accept some spending reductions along the way, conservative Republicans failed in their initial attempts to force deep cuts in the bill.

Sen. Johnny Isakson, R-Ga., who advanced the homebuyers tax break, said it was intended to help revive the housing industry, which has virtually collapsed in the wake of a credit crisis that began last fall.

The proposal would allow a tax credit of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers.

Isakson's office said the proposal would cost the government an estimated $19 billion.

Democrats readily agreed to the proposal, although it may be changed or even deleted as the stimulus measure makes its way through Congress over the next 10 days or so.

Other GOP attempts to change the measure went down to defeat. The most sweeping of them, by Sen. Jim DeMint, R-S.C., failed on a mostly party-line vote of 36-61. It would have replaced the White House-backed legislation with a series of tax cuts on personal and business income and capital gains at the same time it made cuts passed during the Bush administration permanent.

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Only 3 years, 11 month and 2 weeks until the next Presidential term. That's 3 years plus of Republican whining and MSM spinning while Obama does what he needs to do to run the country.

The stimulus is going to pass at some point, and it most likely will not be the last infusion of money into the ecomony. Eight years of reckless economic policies are not going to be reversed in a month.

[democrattotheend]

1. I actually like that idea

As a potential first-time homebuyer in the next few years I like the idea of this tax break. Anything that will make it a little easier to afford is good. Although if it encourages more people to buy homes they can't afford then that's bad.

[Muttocracy]

3. Same here - posted the text of the amendment here:

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=4981659&mesg_id=4982181

[CTyankee]

12. Me too. It's great if they can get a loan!

Do you think they can get it, with today's frozen credit market?

[Fire1]

29. And have a job. n/t

[Connie_Corleone]

2. There have been 3 amendments approved so far that have been good additions to the stimulus bill.

Fortunately, the Republican amendments that should be in a budget bill are being voted down by the Democrats.

[ProSense]

5. You think Republicans are going to vote against the stimulus with this amendment in it? n/t

[Connie_Corleone]

7. I don't know what they're going to do.

They just want the President (the country) to fail.

[ProSense]

11. Yeah, I suspect

the Repubs could find a reason, but it would remind people of their true colors.

[last_texas_dem]

22. Their fallback will always be that the stimulus package is "too big" and costs too much

Never mind that they gave Bush just about every spending measure he wanted. When a Democrat's in power, the right-wing decides that deficit spending must again be avoided at all costs.

[leftstreet]

4. This is awesome news for the impoverished in our society

Er...wait, what?

[Connie_Corleone]

6. An amendment also passed regarding low-income housing.

[leftstreet]

8. Ah, a little something for all the classes. Er, I mean masses n/t

[ProSense]

9. Are you implying that the bill should include only measures for "the impoverished"? n/t

[leftstreet]

10. No n/t

[Thrill]

13. The Democrats are doing a good job stopping these ridiculous amendments

I'm loving the new Senators in this Congress

http://senate.gov/legislative/LIS/roll_call_lists/vote_menu_111_1.htm

[RinaX]

14. But, but. I thought the whole thing was crashing and burning, and,

and, and...:shrug:

[Connie_Corleone]

15. The Senate just voted down McCain's amendment to get rid of the Buy American provision.

That's good.

[HOLOS]

16. debt forgiveness for sub-prime fraudulent predatory loans wold be good nt

[seaker]

17. Does anyone know or is it too soon?

I bought a home in November 2008, will this credit apply or only 2009 forward? The $7500 one for last year is a loan a taxpayer must payback in the coming years at $500 a year...

[Writer]

19. I have that same question.

I sold a home in June of 2008 and purchased another home in July of 2008.

Not a first-time homebuyer, though.

[ProSense]

20. I doubt this bill will survive the Conference Committee in its current form. n/t

[joeglow3]

23. It is good for 1 year starting on the date the bill is signed

At least, in its current form.

[Blue_In_AK]

18. I bought my house back in 1990,

within my means, and have never been late on a payment. Anything for me?

[quaker bill]

21. Lots for you

just not a credit for your home purchase.

[jberryhill]

25. Yes

If your home has recently devalued, the blow has been softened to the tune of 15K a prospective buyer might not otherwise have had.

If your home has not recently devalued, its value just went up by approximately 15K.

When this passes, sell your home and cash in.

I know how you feel though. Decades after Roe v. Wade, I *still* can't get an abortion. They keep telling me it's because I am a man, but I can't see how the government can't do something to benefit everyone, every place, every time.

[Blue_In_AK]

28. Oh, I don't think I'm going to sell my house.

This place has been a Godsend for me in this tough time -- I got in during the last real estate crash here in Anchorage, so my mortgage is low, plus it's a duplex and my tenant pays almost 3/4 of my mnothly payment. A good deal for her, too, since I've never raised the rent.

No, I think I'll just sit tight and feel happy for the new home buyers. :)

[jberryhill]

30. ...and sellers

This helps sellers too.

Instead of keeping your house, get out there and start stimulatin'.

[bullwinkle428]

24. So this is not just for first-time buyers? This is for anyone?

This would be a huge deal, if this is indeed the case...

[Life Long Dem]

26. Sure... buy buy buy... in a buyers market.

[Life Long Dem]

27. I like what Obama said when he said "Let's not make the perfect the enemy of the essential".

So the package isn't going to be perfect. But why throw away everything else that's good?