While President Obama looks to push through the economic stimulus plan, reactions are still coming in about the tax credit approved by the Senate earlier this week that would give buyers 10 percent of the purchase price of any home, up to $15,000, applied to their tax bill.
Via the Associated Press: "… the tax incentive is likely to be more helpful to buyers in less expensive markets," said Christopher Thornberg, a principal with Beacon Economics in Los Angeles. "Unfortunately, in the places that are most hard-hit, like California, it’s going to have less of an impact," he said.
More skeptics via LA Land, where Dean Baker is trying to figure out the math behind the package. Plus, there’s the gaming risk, he writes: "It’s hard to see why tens of millions of people wouldn’t figure out a way to buy a house from a friend or relative and get their $15k. If we can get one-third of the country’s homes to change hands (lots of jobs for Realtors), that would be good for $375 billion." [AP/LA Land]
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