The Senate has proposed a plan that includes giving a $7,000 tax credit to anyone who buys a forclosed home. I understand that their intention is to keep the oversupply of homes from continuously depressing the real estate market and the recovery.

Two homes are for sale in the neighborhood. One is forclosed and one is owned by a responsible home owner who has a steady job and has lived up to the mortgage agreement he signed years ago.

This plan just reduced his home value $7,000, the value of the tax credit for his forclosed neighbor.

One could argue that with the oversupply that his home value is depressed any way. I would argue that this loss would be more productively absorbed by the fool who bought a house he could not afford and the bigger fools who loaned him the money.

This foolish desparate solution is proposed by Republicans such as our own Johnney Isakson.

print