I’m sure you were shocked to read the headline of this blog post. The REALTORS® want more taxA tax is a mandatory payment or charge collected by local, state, and national governments from individuals or businesses to cover the costs of general government services, goods, and activities. preferences for housing. In this week’s edition of the rent-seeking lobby’s publication “Economist’s Commentary,” REALTORS® Chief Economist Lawrence Yun argues that a tax creditA tax credit is a provision that reduces a taxpayer’s final tax bill, dollar-for-dollar. A tax credit differs from deductions and exemptions, which reduce taxable income, rather than the taxpayer’s tax bill directly. is needed to help the housing industry during this downturn.
Unbelievable. We have a situation where too many people bought homes that were too big and now we need to not let it fall, according to NAR. In other words, according to NAR, it is the government’s responsibility to artificially keep the housing bubble from popping. Maybe the government should have done this with the stock market bubble in 2001, and given Wall Street investors a huge tax credit for buying stock in internet tech companies.
I guess over $100 billion of tax subsidies already in the code isn’t enough for these folks in the housing industry. It’s insanity, folks. And can you believe they actually have supporters of this credit on Capitol Hill?
My question is, Why does housing need any help? According to former Realtors® Chief Economist David Lereah, there is no need for help for the housing industry. Why do I say that? I just based my assumption on the book he published in 2005, which was entitled “Are You Missing the Real Estate Boom?: Why Home Values and Other Real Estate Investments Will Climb Through The End of The Decade—And How to Profit From Them.” (By the way, you can buy a copy of this book right now on Amazon for 31 cents plus shipping.)
The folks on Capitol Hill should believe the promises the Realtors® are making right now about the magic of a housing tax credit with the same grain of salt one should take when reading the title of Lereah’s 2005 book today.
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