Home Buyer Tax Credit Price Tag: $22 Billion
Original Post Date: September 7, 2010
By: Emily Peck
The total estimated cost of the home buyer tax credits is about $22 billion, according to a report released by the Government Accountability Office last week. The report looked at all three of the tax credits, which were in effect from April 2008 through June 30, 2010.
As we’ve written, the credits did a lot to juice sales. But many have argued that the government incentives basically pulled folks who were already planning on buying a home into the market earlier. And certainly, we’ve been seeing the post-credit hangover: Home resales dropped to record lows in July. Talk of a housing double-dip is in the air.
Some now argue that the government should just step back and let prices fall instead of propping up the market with tax credits and other buyer incentives.
Then some are still hoping for more: According to this NY Times article, some home builders are seeking a $25,000 tax credit.
“Our members are saying that if we can’t get a very large tax credit — one that really brings people off the bench — why use our political capital at all?” David Crowe, the chief economist for the home builders, tells the Times.
Readers, was the tax credit worth the money?