Tuesday, October 13, 2009

Republican budget busting

Sen. Johnny Isakson two weeks ago on the Senate floor:
Those are the two things Republicans don't want, which is more debt to bankrupt our children and grandchildren and more taxes.
Sen. Isakson today:
Those purchasing new homes would be eligible for an $8,000 tax credit under legislation to be introduced by Sen. Johnny Isakson (R-Ga.).

Isakson will offer the tax break for homebuyers as an amendment to legislation extending unemployment benefits, according to his office.

Isakson’s measure would greatly expand an $8,000 tax credit included in the $787 billion economic stimulus package Congress approved earlier this year. That credit expires at the end of November.

The new measure would keep the credit at $8,000, but would make all homebuyers eligible, instead of limiting it to those purchasing their first home. It would also double the income limits on those eligible to win the credit to $150,000 for an individual and $300,000 for a couple.

This would greatly increase the cost of the tax credit at a time when the government is dealing with record budget deficits.
Okay, one out of two isn't so bad. Apparently, "bankrupt(ing) our children and grandchildren" is okay, so long as it involves extending a tax credit to households making up to $300,000 per year.

The current tax credit costs about $15 billion per year. Sen. Isakson's proposal could easily double those costs.

Congress needs to look at ways to close the budget gap, not add to it.

3 comments:

Pino said...

While I don't think it's that great an idea to incent people to buy houses right now, I am confused. Lower taxes is a good thing, yes?

Dave Ribar said...

Don't I recall someone criticizing Democrats for proposing a second stimulus?

Pino said...

Tax cuts are fine. Stimulus packages are no bueno.