Yesterday, House Republicans delivered an economic recovery plan to President Barack Obama. Along with the to-be-expected permanent corporate tax cut, the plan includes a $7,500 home-buyers credit, “in order to encourage responsible buyers to enter the market and stabilize [housing] prices.”
As the Center for American Progress’ Andrew Jakabovics noted, this credit has been pushed for by the real estate industry, and “will only save the average buyer the equivalent of a latte a month, which is not likely to incentivize anyone who is not already planning to buy a home.”
To address declining housing prices, the “flood of foreclosures” needs to be halted, but that is not something conservatives are willing to support. Instead, they’d rather craft a gift credit for special interests.