The last few months of 2008, Congress passed a tax credit of for first-time homebuyers or individuals not owning a home in the last 3 years. The credit is 10% of the purchase price with a credit limit of $8,000. It was intended to halt the housings crisis, by reducing the huge inventory of vacant houses.

Some have projected that 40% of all homebuyers this year will qualify for the credit. The cost to taxpayers will be close to $15 Billion dollars, almost twice the projections made by Washington in the stimulus bill. Looking at these poor projections and that of the cash for clunkers program, how can we believe any cost projections made by Washington?

Lobbyists of the 1.1 million membership of the National Association of Realtors are busy; because the credit is due to expire November 30. They claim the housing industry recovery will reverse without extension of the credit. They are pushing to expand the program to a $15,000 tax credit for any homebuyer for the next three years. This projected program cost to taxpayers is $50-100 Billion Dollars. Do you think we could possibly recover some of the cost by placing a $200 fee/tax on all realtors and sellers for each sale? I doubt it; taxpayers will pay for the entire bill.