Skip to comments.Congress Considers $15,000 Rebate Checks For All Home Buyers
Posted on 03/13/2008 11:07:18 AM PDT by BGHater
Sen Johnny Isakson Says Checks Would Entice People To Buy
He would know.
As a longtime realtor in Cobb County, Sen. Johnny Isakson has seen housing downturns before. "We had recessions in 1968, 1974, 1982, and 1991, by every measurement, this is going to be a deeper and bigger recession in residential housing. It's a significant event."
Isakson is pitching an idea to his colleagues in Congress: a $15,000 tax rebate check to anyone who agrees to buy a home. Congressional budget analysts project the program would cost $14 billion over the next few years. But Isakson said the rebate checks are well worth the hefty price tag. "If we can convince buyers to come back to the marketplace and buy these houses, then the houses aren't vacant. It's replaced by an owner-occupant, who is there making payments on a loan and helping all of the other houses around."
Senate Republican leaders have signed on to the rebate check idea. But they have to corral support from Democrats. Senate Democratic leader Harry Reid is instead pushing a foreclosure relief proposal called The Foreclosure Prevention Act of 2008, which would offer $4 billion to cities to rehab or knock down foreclosed properties. Reid's Democratic colleague Sen. Bob Casey said, "It's important that we have as much money as possible in the hands of local communities, to get it into communities, where they know how to spend those dollars and help families through this crisis."
Figures compiled for wsbtv.com by mortgage analysts with RealtyTrac show a surge in Atlanta-area foreclosures. In 2006, RealtyTrac reported 33,018 foreclosure filings in the Atlanta region. In 2007, 50,271 people were foreclosed upon.
The Senate is expected to debate both competing foreclosure proposals. Presidential candidates have also publicly announced proposals to ease the housing crisis. Sen. Hillary Clinton has proposed a temporary freeze on all home foreclosures.
so much for the flat tax
Does refinancing count?
/tongue in cheek
Bullshiat, let the housing prices fall to an affordable level, the reason people aren’t buying is because they can’t afford the damn things anymore.
This is NOT a good idea.
Last time I checked, and I could be wrong here, Congress doesn’t manufactur products, produce goods and services, or grow crops or mine commodities for sale and income.
Just WHOSE money are they talking about when Congress decides to give a rebate to home buyers?
It had better not be mine.
This is just more self stimulus that will prove to be economically just as empty of fulfillment. We would be just as well off to insist that homeowners get a large cash advance on their own credit cards.
Discrimination against existing home owners.
Johnny is not the sharpest knife in the drawer, and he made his $$ in real estate in the Atlanta area. A very feeble idea. Politician cannot see the error of their ways - just a few years ago they were promoting home ownership to anyone who could fog a mirror. This was a big part of the problem. So here comes Johnny - stepping in it once again.
So who will end up truly owning “your” house? The bank or the government?
Not that it’s easy to tell the difference anymore...
Ugh. Congress should just let the market self-correct and keep their noses out of it!
“Just WHOSE money are they talking about when Congress decides to give a rebate to home buyers?”
maybe Congress can get Spitzer to launder some from his charities etc.
Heck, in some of the backwater places I have traveled through in the US, this could almost be payment in full!!! LOL!!!
My neighbor and I am going to buy each other’s house and make $15K a piece whoopie!
This is a BAD idea.
I can’t find anything in Article 1 of the Constitution of the United States of America that gives Congress the power to use my money to try to increase the number of people buying houses in the country.
Can someone help me out, here?
I was just thinking that I wouldn’t mind picking up a $15K worth of land with a fishing/hunting cabin somewhere.
What the Congress wants is tantamount to issuing you a credit card, taking a large cash advance on it, giving the cash to someone else, and leaving you stuck to pay the bill.
The end result will be they will own your house, your finances, and your soul. Deal? Sign here.
bingo!! The dumbest thing policymakers can do now is to try to STOP the housing market from correcting.
I don’t mind if they cushion the financing market the way the Fed is doing. That just allows the inevitable to happen a little more slowly, and thereby limits the collateral damage. But to actually allocate taxpayer money to keeping houses too expensive is craziness.
Why not just go ahead and mail everyone a check for $1,000,000 and be done with it? Hell, why not $10,000,000, the feds can just print the money to cover it!
Another idiot drinking the water in D.C. I want a 25,000 rebate for not selling my home and being responsible and making my payements on time.
The government needs to stay out of the housing market and let the economic forces decide the costs. When the prices fall, folks who couldn't afford a house before, now can.
Actually, he appears to be about as sharp as a bowling ball. He strikes me as the type who maybe has a small fortune because now because got a LARGE fortune from Daddy.
What this would do is bring new creditless subprime morons into the market using the 15k as a downpayment on something they can’t/wont pay for!
Just give everyone a million dollars and we’ll be a country of millionaires, problem solved! Kind of like Zimbabwe...
What an amazingly stupid idea.
FUMBLE FINGERS ALERT! My last post SHOULD read:
Actually, he appears to be about as sharp as a bowling ball. He strikes me as the type who maybe has a small fortune now because got a LARGE fortune from Daddy.
Let us keep more of our own money (Payroll Tax) and there will be plenty of shoppers for homes, cars, boats, electronics, appliances, and all of the other big ticket items that stimulate the economy.
Actually the do produce one item and in fact are the world's largest producers of such with Hollyweird coming in second and Male Bovine bringing up a distant third.
How about making it a cool $1,000,000 or even a $1,000,000,000?
I was just telling hubby almost the same thing. Sell our house to daughter (different last name), she sells to brother, he sells to our Mom, etc., etc. In the end it could just be quit claimed right back to us.
We could do this with all the families houses since we all own.
Helluva idea Johnny boy!
You don't give loans to people who aren't going to be able to pay them back...
...unless your goal is to gut the economy and siphon all personal wealth to the government.
The inmates are running the insane asylum.
First, every buyer would instantly jack up the price of his home by $15,000, and; Second, if $15,000 is good, wouldn’t $30,000 be better?
Please, yes, let’s elect a Senator to the WH. They obviously have a plan.
$15K to people who KNEW they were signing up for a bad ride anyway. By all means, we should absolutely reward such idiocy.
“...unless your goal is to gut the economy and siphon all personal wealth to the government.”
On the nose, my friend, on the nose.
To borrow an expression from Bruce Williams, industrial-strength stupid.
That’s exactly the kind of stuff that will go on if this passed.
I’ll approve this on one condition:
The only people to get this rebate are those who paid more than $15000 in federal income taxes in 2007.
At first I was looking for the “Humor” keyword. But then I see it was from the Republicans so it’s like the same thing.
He runs for reelection in 2010.
I can't wait.
This totally sucks.
Greedy bankers and people who believe in the free lunch got us into this mess. I certainly don’t see why I should be penalized for their behavior.
In 1968 the Median Household Income in the U.S. was 7,743 and the Median cost of a home was 20,100 a 2.6 to 1 ratio.
In 2005 the Median Hosehold income was 46,326 and the Median cost of a home was 219,000 a 4.7 to 1 ratio.
These figures are from the U.S. Census Bureau Tables 669 an 942.
Based on affordability, homes were much more affordable in 1968 than they are today. Keep in mind that income and housing coasts can vary significantly from one part of the country to another, as can interest rates. Though the above data does show that a much greater share of household income is required to buy a home today than 40 years ago, with similar downpayment percentages.
It is ALWAYS our money, the government (Congress) has no money of it's own. Even if they use T Bills or Bonds to raise the money, WE STILL PAY IN THE END.
Good Lord! Is this their only answer to anything? Throw money at it! Sheesh!