Congress just passed a $15k tax break (or 10% of the value) on a purchase of a new or existing home as part of the new "stimulation package". This will cost the government about 19 billion in lost tax revenue. I'm not sure how much it will stimulate the economy. Buying a new home will help by creating or at least helping maintain employment. Buying existing homes will not. It will help with home sales though.
The tax credit would give buyers 10 percent of the price of a primary residence bought within one year, up to $15,000. I have not seen the details of this provision yet. I don't know if there are income caps attached to it or not. This brings Obama's stimulation package over the 900 Billion mark.
They've also added a tax break for the purchase of new cars. You now can write off the tax and interest for purchases made this year.
It seems our new government is using this crisis as an excuse to go on a spending spree. Keeping the masses appeased by throwing a few bones our way such as these temporary tax breaks. Obama's been in office 3 weeks and he's already spending over 900 Billion AND cutting revenue.
Hmmmm isn't that the exact same behavior as the consumers that created this mess?
BTW, is it just me or does anyone else want to scratch there eyes out when watching Nancy Pelosi on TV.