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Chorus of Homeowners Who Took $7,500 Credit Grows Angrier

by Will Smith

Chorus of Homeowners Who Took $7,500 Credit Grows Angrier

While would-be homeowners that have sat on the sidelines of the housing market might have been pleased by the Obama administration’s announcement earlier this week of a $8,000 tax credit, one group appears decidedly displeased. Those that were induced to buy a home by last year’s $7,500 tax credit are now crying foul that the new credit isn’t fair. Remember, it’s not the $500 difference between the two credits that bothers them so much, it’s that their $7,500 credit has to be paid back while the new $8,000 credit does not.

After we reported on the new credit earlier this week, a flurry of readers expressed their anger in the comments section. Following are some examples:

“Those who bought a home before Jan 1, 2009 are getting the shaft, twice. $500 less AND you have to repay.”
“So is it official? Those who bought Dec 31st or prior (me personally Sep 2008) have to repay, and those who bought Jan 1st or later get it free? Can someone direct me to a government site that spells this out? And also, how can we organize and fight this obviously unfair ruling?”
“All of us that were first time homebuyers in 2008 must immediately start writing our congressman. This is totally unfair. We helped the economy by buying in 2008, and now are getting screwed. It should have been retroactive. Let’s all ban together and fight this horrible oversight in legislation.”
“Yes it is unfair, and just plain stupid. I’ve been bombarding my congressmen for the past week with my thoughts on this change. There was nothing wrong with the original credit, except that it didn’t encompass all of 2008 and 2009. So instead of fixing that, they turned it into ‘free money in 2009’ financed by taxpayers. Unbelievable. Completely unbelievable. I’m already voting against every single person that voted for this mess come elections… and I’m a Democrat… and I voted for Obama. But this debacle has me disgusted, and I don’t care if I have to vote for a one-eyed chipmunk running for senate… I’m not voting for any of them ever again.”

The question is, will the chorus from the $7,500 crowd grow so loud that the government has to address it? Given that there are many constituencies feeling irked by this week’s raft of housing-related announcements, it doesn’t seem likely that the administration will be able to please everyone.

This article originally published at https://dc.urbanturf.com/articles/blog/chorus_of_homeowners_who_took_7500_credit_grows_angrier/562

5 Comments

  1. BeHeard said at 10:32 pm on Thursday February 19, 2009:

    I truley hope even if nothing is changed that we are heard and it will be brought to the attention of the administration

  1. Jason said at 11:39 pm on Thursday February 19, 2009:

    Somebody is always getting the shaft. That’s just how taxation works.

    * The first several years out of college I always magically just missed the income cutoff for being eligible to deduct my student loan interest.
    * I live in a high cost of living area. Taxes don’t care about COLA.
    * Bush issues a stimulus rebate and I get zero while my married coworker who earns the same salary is issued $1200 because he and his wife didn’t surpass $150K together.
    * I was a first time home buyer in 2008 yet missed the $7500 tax credit by just a few grand
    * I always seem to earn just enough that all but my last 1 or 2K of income is subjected to payroll taxes. Meanwhile the 250K plus earners are only paying the 6.2% payroll taxes on <40% of their income and thus many of them have an effective total tax rate lower than mine.

    The single individual who makes right around $100K is the whipping boy when it comes to taxation.

  1. Annoyed said at 12:49 am on Friday February 20, 2009:

    You know I work really hard and life would be soo much easier if I made $100k a year single let alone with a spouse.  People that make alot less then you could really use this money to try to get ahead. It sucks that you miss out on alot but hey if you dont like it quit your job go work at McDonalds and you will qualify!

  1. Jason said at 10:25 am on Friday February 20, 2009:

    Annoyed, try working hard and working smarter to get ahead rather than government handouts. Make better choices. I wasn’t birthed making ~$100K. It took 14 years of 50+ hour weeks.

  1. Brandon said at 12:37 pm on Friday February 20, 2009:

    As a real estate agent in Washington, DCc, clearly I’d love to see the government do whatever it can to get the market moving again. But one of the risks of buying real estate—-or any investment—-can change right after you make your purchase. I don’t see how the dates the government’s choice of dates is that much different from arbitrary market forces.

Comments are closed.

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