Comments on: Vote on Stimulus Package Set for After the Inauguration http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/ Paying taxes is painful... but reading about them shouldn't be. Sat, 21 Nov 2009 20:16:58 -0500 http://wordpress.org/?v=2.8.6 hourly 1 By: Congressional Officials Critical of Tax Breaks in Proposed Stimulus Plan | taxgirl http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/comment-page-1/#comment-8253 Congressional Officials Critical of Tax Breaks in Proposed Stimulus Plan | taxgirl Mon, 12 Jan 2009 21:00:07 +0000 http://www.taxgirl.com/?p=2258#comment-8253 [...] blogged previously, Obama’s proposed stimulus package is meeting resistance - on both sides of the [...] [...] blogged previously, Obama’s proposed stimulus package is meeting resistance – on both sides of the [...]

]]> By: Terri http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/comment-page-1/#comment-8227 Terri Sun, 11 Jan 2009 13:29:00 +0000 http://www.taxgirl.com/?p=2258#comment-8227 I have to agree with Larry Wright on this one. I left the mortgage business a few years ago, the up and down atmosphere and stress was taking a toll on my family. But I still agree with him completely! People need a good reason to get off any money they may have been sitting on and this is the best way I can think of to get many markets rolling again. I just wish our powers that be would quit looking for quick fixes and look @ long term. I have to agree with Larry Wright on this one. I left the mortgage business a few years ago, the up and down atmosphere and stress was taking a toll on my family. But I still agree with him completely! People need a good reason to get off any money they may have been sitting on and this is the best way I can think of to get many markets rolling again. I just wish our powers that be would quit looking for quick fixes and look @ long term.

]]> By: Larry Wright http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/comment-page-1/#comment-8218 Larry Wright Sat, 10 Jan 2009 22:46:29 +0000 http://www.taxgirl.com/?p=2258#comment-8218 To get the economy rolling again we need money to start flowing from the institutions and the housing market to cycle inventory so that there are manufacturing demands. The government has already appropriated the money for lending, but may need to force their leverage to get it flowing. What I propose they start for a housing stimulus is a program that would pay 2% of the interest for new mortgages (example; 5 years of 2% payments for existing home purchases / 8 years of payment for new home purchases with a $200K maximum). These mortgages could be piggybacked with a secondary loan for those qualified and interested in the jumbo market. This program would only be available for a 3 - 6 month window of opportunity. This would entice people to BUY NOW, instead of sitting on their hands, waiting on prices to continually drop. A person could sell their house as the payment term ends with no prepayment penalty, so that they could retain their equity (building wealth for investment), or they would just continue at the original rate of the loan (building more equity). Incomes should increase during the time of the payment program, which would allow a homeowner the opportunity to meet their original obligations. A program for refi (2% for 3 years?) could also be effective in helping people with a straining mortgage stay in their residence, warding off foreclosure. One of the pros for the government is that this program would allow for pay out over 5 - 8 years as opposed to dropping a $trillion dollars in a relative short period of time. As an example, using simple mortgage calculations; A $200K loan for 30 years at 5.25% equals a monthly P&I of $1,104.41. A $200K loan for 30 years at 3.25% equals a monthly P&I of $870.41. A person would only pay 79% of what they would normally pay for this mortgage. The government would pay $2,808.00 per calendar year. If they helped SELL one million homes in this manner, it would only equate to $2.808 Billion of bail per year. This would equate to $200 billion in residential sales, untold return in tax base revenues, the reduction of housing inventories, new construction starts and a stimulation of the manufacturing sector with the new demand for appliances, HVAC units and other housing related concerns. Stimulation without incentive is ineffective and should also be accompanied by time constraints. You do not see Black-Friday Christmas type sales all year long. There is a reason they happen and are of such a grand economic scale, as they are limited by an event, timeframe and deadline. Please quit using our money to pander for votes by trying to purchase them with a $500.00 gratis or $1000.00 tax credit. To get the economy rolling again we need money to start flowing from the institutions and the housing market to cycle inventory so that there are manufacturing demands. The government has already appropriated the money for lending, but may need to force their leverage to get it flowing.

What I propose they start for a housing stimulus is a program that would pay 2% of the interest for new mortgages (example; 5 years of 2% payments for existing home purchases / 8 years of payment for new home purchases with a $200K maximum). These mortgages could be piggybacked with a secondary loan for those qualified and interested in the jumbo market. This program would only be available for a 3 – 6 month window of opportunity. This would entice people to BUY NOW, instead of sitting on their hands, waiting on prices to continually drop. A person could sell their house as the payment term ends with no prepayment penalty, so that they could retain their equity (building wealth for investment), or they would just continue at the original rate of the loan (building more equity). Incomes should increase during the time of the payment program, which would allow a homeowner the opportunity to meet their original obligations. A program for refi (2% for 3 years?) could also be effective in helping people with a straining mortgage stay in their residence, warding off foreclosure.

One of the pros for the government is that this program would allow for pay out over 5 – 8 years as opposed to dropping a $trillion dollars in a relative short period of time.

As an example, using simple mortgage calculations; A $200K loan for 30 years at 5.25% equals a monthly P&I of $1,104.41. A $200K loan for 30 years at 3.25% equals a monthly P&I of $870.41. A person would only pay 79% of what they would normally pay for this mortgage. The government would pay $2,808.00 per calendar year. If they helped SELL one million homes in this manner, it would only equate to $2.808 Billion of bail per year. This would equate to $200 billion in residential sales, untold return in tax base revenues, the reduction of housing inventories, new construction starts and a stimulation of the manufacturing sector with the new demand for appliances, HVAC units and other housing related concerns.

Stimulation without incentive is ineffective and should also be accompanied by time constraints. You do not see Black-Friday Christmas type sales all year long. There is a reason they happen and are of such a grand economic scale, as they are limited by an event, timeframe and deadline.

Please quit using our money to pander for votes by trying to purchase them with a $500.00 gratis or $1000.00 tax credit.

]]> By: Wally's World of Taxes http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/comment-page-1/#comment-8214 Wally's World of Taxes Sat, 10 Jan 2009 18:32:35 +0000 http://www.taxgirl.com/?p=2258#comment-8214 With all the job lossess and pay cuts and layoffs, we had layoffs in the company I work for, that were ecperienced this past year in the US, I don't see expenses cuts, tightening of the belt in the government. They are just not taking it to heart to get help out to the tax payer quick enough. Where are the cuts for salries in the government? Most companies have considered many options to cut back. Lets get some accountability and some real work ethics in the congress. You work for us, get it moving! With all the job lossess and pay cuts and layoffs, we had layoffs in the company I work for, that were ecperienced this past year in the US, I don’t see expenses cuts, tightening of the belt in the government. They are just not taking it to heart to get help out to the tax payer quick enough. Where are the cuts for salries in the government? Most companies have considered many options to cut back. Lets get some accountability and some real work ethics in the congress. You work for us, get it moving!

]]> By: Skip McQuaid http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/comment-page-1/#comment-8209 Skip McQuaid Sat, 10 Jan 2009 12:42:53 +0000 http://www.taxgirl.com/?p=2258#comment-8209 No they are not listening. They are still worried about who has the "power". If the current plan passes I have no idea what I will do with my extra $10 a week - perhaps buy a new home - or maybe a new car - or maybe a Big Mac - probably the Big Mac. And if my neighbors get jobs building or repairing all these roads I am absolutely certain they will run right out and buy a new home and car. Seriously I know you are not supposed to critize unless you have something better to offer but I simply don't know of anything better - but I don't think more bail outs or more stimulus programs are the answer - maybe the answer is to bite the bullet and go through these bad times slowly....I know that will hurt a lot of people but I still don't think that what they are doing will work any better. But I could be wrong. Skip No they are not listening. They are still worried about who has the “power”. If the current plan passes I have no idea what I will do with my extra $10 a week – perhaps buy a new home – or maybe a new car – or maybe a Big Mac – probably the Big Mac. And if my neighbors get jobs building or repairing all these roads I am absolutely certain they will run right out and buy a new home and car. Seriously I know you are not supposed to critize unless you have something better to offer but I simply don’t know of anything better – but I don’t think more bail outs or more stimulus programs are the answer – maybe the answer is to bite the bullet and go through these bad times slowly….I know that will hurt a lot of people but I still don’t think that what they are doing will work any better. But I could be wrong.

Skip

]]> By: Anne Wayman http://www.taxgirl.com/vote-on-stimulus-package-set-for-after-the-inauguration/comment-page-1/#comment-8199 Anne Wayman Fri, 09 Jan 2009 20:22:44 +0000 http://www.taxgirl.com/?p=2258#comment-8199 Kelly, you're mom was right, but politicians seem immune to that type of thinking... part of the sound byte, perpetual campaign atmosphere that drives everything in politics today. I've got my fingers crossed! Anne Wayman, now blogging at www.aboutfreelancewriting.com Kelly, you’re mom was right, but politicians seem immune to that type of thinking… part of the sound byte, perpetual campaign atmosphere that drives everything in politics today.

I’ve got my fingers crossed!

Anne Wayman, now blogging at http://www.aboutfreelancewriting.com

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