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Originally Posted by Army_of_One  Right....The media (read...Left wing agenda) are the one's putting this stuff out to scare people. Making the tax cuts permanent would do nothing but good things for our country but the Dems want to repeal them with the quickness. I don't understand that. |
No, they don’t want to repeal them. Just let them expire and claim it’s not a tax increase because it was just a temporary cut.
Here’s why it’s important for housing to keep the cuts. Right now values are down because there is a surplus of houses on the market. This hurts all of us because we have less equity to leverage with. It’s OK if you plan on staying put for awhile but not if you need to relocate for some reason or want to borrow against the equity for a new addition or remodel. We need to turn the market around and get values back up. That will help some of the families in trouble because they will have more of an asset to refinance a better loan. That makes fewer folks needing a bail out.
How to move the excess inventory of houses? Prices are down and interest is low so they should be flying of the shelves. They’re not because folks are scared to buy. Individuals worry about their jobs with all the recession talk and they worry that the market will continue to fall leaving them stuck with more loan than house. Investors worry about the market too. The long term guys that plan to rent the place and hold it until values are up can do OK. The short term guys doing fix-and-flips are at high risk with a depressed market. It’s hard enough to bargain for a property at a price that allows you to go in, fix it and turn it for a profit. Jacking up the taxes cuts into the profit margin and can make it not worth doing. So more properties set vacant depressing the market and most folks won’t buy a trashed out house. We need low taxes to encourage people to repair the distressed properties.