Ability Realty

I have been watching the $8000 Federal Tax Credit and what it has done to help reduce the number of listings for sale in Tucson. I can not put an exact number on the sales purchased by a buyer that qualifies to receive the credit, but I know it is a large portion of our sales. The program is to expire on December 1, 2009. I know there is a bill in the Senate to increase the Federal Tax Credit amount to $15,000 and allow, I believe, anyone purchasing a personal residence to get the credit. I am fairly certain this will happen to extend the time frame, but not sure about the other parts of the bill. My suggestion is to use a larger portion of the “Economic Stimulus”  for home purchases. I would suggest keeping the $8000 or possibly $10,000 Tax Credit and allowing anyone who is purchasing a personal residence to use the program. I would take it to July 1, 2010 for an expiration date. I would not announce the extension until November of 2009 as we want the homes to close that are subject to the current Tax Credit. This is also why I think it should remain at $8000, so it will not cause a buyer to walk away from a transaction they may have in escrow.

1 Billion Dollars would generate 125,000 sales. 10 Billion will generate 1,250,000 sales. We have spent less than 10% of the Economic Stimulus at this time according to the news I am reading and seeing on TV. Why are we doing all these stupid projects that are nice but not what we need to jump start the economy?

Do you realize that each home purchase will generate some sales of appliances, furniture, home products not to mention the movement costs to a mover or rental truck company. Many of these items will generate jobs to sell the items and to produce the items. Now that is what jump starts the economy, not turtle tunnels, mouse habitat or some of the other dumb (see remark at end of this post) projects that are to happen. Fund that at a later date from State Tax revenue.

The new home builders will also go back to work and employ construction people and all related vendors to build, and generate many jobs for each local and State economy.

When will our Federally elected Representatives finally get it through their heads that we can not spend what we do not have. We do not have what it takes for this program but it makes more sense than what I have seen so far.

EDIT: 07/08/2009
We received a comment from a reader who pointed out that some of these special projects, specifically the turtle tunnels, would create many jobs and would help with the economic recovery.  While this is true, and perhaps my use of the word dumb reflected on the individual projects but was meant to reflect on the personal agendas of some politicians, these personal pork barrel projects, in my opinion, have no place in this bill. These projects, if they have true value, should stand on their own merit and not be passed by the use of political magic. These projects probably will have economic value, but this value will be limited primarily to their specific locations.