House Votes to Extend First-Time Home Buyer Tax Credit for Service Members

This report says they are estimating a $77 million dollar tax revenue loss over the next 10 years from the "First Time Homebuyer's" tax credit, but are we taking into consideration of the new taxes it will generate today from new home construction?

The average "new home" sale in America is about $200,000. Of that price about $50,000 is the cost of land, $75,000 is the cost of material, and $75,000 is labor. Each new home would generate approximately $75,000 of income to companies in the form of profit or wages to a tax paying entity or individual. If the average wage earner is in the 27% tax bracket that would mean the average home sale generates $20,000 in new tax revenue next April. If we grant an $8000 tax credit we still are ahead $12,000 in new tax revenue that would never happen if we didn't have a motivated home buyer. Such a plan is a net tax generator and not a loser. And if this be true, why not open it to all buyers of a New Home??? The housing market got us in this mess and it could be the way out, also. Motivate the consumer and our capitalistic system works very well. And you do that with tax credits... not institutional bailouts. Mark Zoller Real Estate Broker, Vancouver, WA.

Mark Zoller of WA 2:56PM October 28, 2009

I'm a realtor in Kentucky who proudly supports the extension of this tax credit to our military personnel overseas. The extension of the $8000 tax credit to our brave service personnel is a MUST and is our way of saying THANK YOU them for their service to our communities, individuals states and the United States as a whole.

God Bless All of you!

Becky Babbage of KY 6:04PM October 26, 2009

I am priced out of the house market in the Boston area because of this tax credit! There are bidding wars going on, houses are selling in days which has caused the market to spike $20k since September - all a false market and causing people to spend more money than the up to $8k one can benefit when filing their tax returns. People are not educating themselves on this credit and the Government is causing yet another "false" situation in the marketplace which Banks originated. I sold my house because I am a single white female who needed to downsize due to being unemployed. I need to buy something for cash and I sold just before the market spiked to rush and meet the deadline - therefore I did not get the $20k spike and cannot buy something. I want to move closer to the highway, just 5 miles from my current home and the prices have sky rocketed and I am now facing a homeless situation. I was hoping the "feeding frenzy" would cease after November 30th - why don't you give others a chance to benefit? I am just if not more unfortunate than those 1st time buyers that can afford to buy! I can't even afford to rent.

Nancy of MA 10:40PM October 22, 2009

Because LEOs aren't deployed overseas. And if they were, it would be because they are/were in the military.

Erik Peters of CA 11:48PM October 17, 2009