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New Tax Credit for Homebuyers Unnecessary

Posted By Curtis Dubay On June 11, 2009 @ 11:51 am In Ongoing Priorities | Comments Disabled

Senator Johnny Isakson (R-GA) reintroduced his plan today to create a $15,000 tax credit for homebuyers purchasing primary residences. [1]

The goal of the plan is to jumpstart the depressed real estate market. But as we pointed out last year when Senator Isakson introduced a similar bill, it will not work and it is bad policy. [2]

Furthermore, this additional tax credit is unnecessary because the tax code already encourages homeownership. Mortgage interest is deductible and the stimulus already created an $8,000 credit for first-time homeowners available for homes purchased in 2009.


Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org

URL to article: http://blog.heritage.org/2009/06/11/new-tax-credit-for-homebuyers-unnecessary/

URLs in this post:

[1] reintroduced his plan today to create a $15,000 tax credit for homebuyers purchasing primary residences. : http://isakson.senate.gov/press/2009/061009housing.htm

[2] But as we pointed out last year when Senator Isakson introduced a similar bill, it will not work and it is bad policy.: http://www.heritage.org/Research/Economy/wm1873.cfm

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