Serving Waukegan, Libertyville, Lake County, Gurnee & nearby areas of Illinois
Posted: November 7, 2009
Just this week Congress extended the first time home buyer’s tax credit thru May 1st, 2010. Anyone who has never bought a home or has not owned a home in the past 3 years is eligible for a tax credit of up to $8000. A brand new provision allows anyone who has lived in their current home for at least 5 years to receive a tax credit up to $6500 for the purchase of a new home. This is the kind of thinking that is sure to get the real estate market moving again and to improve our overall economy. There is no doubt that the existence of the first time buyers credit during 2009 had a very positive effect.
Cutting taxes will always help spur economic growth. Its been proven time and again. Much of our current economic mess can be attributed to confiscatory tax rates. While this new legislation is a rare positive sign from Washington, the excess of spending still must be curbed. There is little to no evidence that the bailouts of banks and private businesses has had a significant effect. It is undisputed that the cost of the massive TARP program and auto company bailouts far exceeds the value of any benefit received.
Message to our politicians: Keep cutting taxes. Reduce spending significantly and stop spending more than we take in. It works every time its tried. A simple solution to a complicated problem.