The economy follows the housing market. It's a fact. So instead of giving potential home buyers a $7,500 tax credit (which is actually just a loan that has to be paid back), that no one wants or is even using, the government needs do something that will affect the housing market and in turn pull this economy out of it's slump.
It is also a fact that tax cuts stimulate the economy. It's really simple, if you are a small business owner and your taxes go down, your overhead goes down which means you have more capital, which will allow you to increase your marketing, increase your staff, or even expand. Each of these things lends to the increase of the others, which ultimately leads to more job creation, which leads to more people paying taxes, which leads to the government generating more tax revenue in spite of the tax cuts.
So taking these two things into consideration, we need tax cuts! Capital gains tax cuts so we're not penalized for selling our homes within two years of the initial purchase. Income tax cuts so we have more disposable income. And finally a reduction in interest rates to encourage those who may be sitting on the fence to finally make their move.
So if the current administration wants to REALLY fix this economy, they need to cut our taxes and lower interest rates. Taking the tax credit from $7,500 to $8,000 and the move to make the tax credit an actual credit as opposed to the original loan that it was is a step in the right direction. But we need more. I would encourage you to contact your Representatives and urge them to take the necessary steps to fix housing first. Once people start buying and building homes again, the economy will follow.
2825 East Cottonwood Parkway
Salt Lake City Utah
Builder Director Salt Lake Home Builders Association
Winner arade of Homes "Best of Show"