694 Pages of Housing Rescue – Confused? You are Not Alone
Today’s Square Feet blog pointed out that the new Housing Rescue bill – while highly praised as necessary and timely, contains 694 pages of “mumbo-jumbo” that most homeowners in trouble would have trouble plowing through. Federal legislators at least added some help in navigation, but the Square Feet blog went on to point out:
“Unfortunately, if you are going to read the fine print, nothing will save you from paragraphs like this one, which is in the section about the first-time homebuyer tax credit:
‘‘(2) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME.—
‘‘(A) IN GENERAL.—The amount allowable as a credit under subsection (a) (determined
without regard to this paragraph) for the taxable year shall be reduced (but not below zero)
by the amount which bears the same ratio to the amount which is so allowable as—
‘‘(i) the excess (if any) of—
‘‘(I) the taxpayer’s modified adjusted gross income for such taxable year, over
‘‘(II) $75,000 ($150,000 in the case of a joint return), bears to
‘‘(ii) $20,000.”
I don’t know about you, but I am confused! I hope that ambiguity doesn’t create delays that hold up the much needed help for homeowners in our troubled times.
A site that provides a “cheat-sheet” to this tedious document can be found at http://www.ushousingmeltdown.org/2008-housing-law.asp. This site separates out the key areas of the new law and points to the pages in which each section is covered. It also educates citizens about the “pork-barreling” that went into this much needed new law – with this section:
“Pork highlights include tax breaks for an unnamed auto partnership that produces 675,000 autos between 1/1/08 and 6/30/08. Chrysler? Pages 675-676.Another interesting addition is this provision that allows a foreign company, National Steel Car of Canada, to obtain millions of dollars in tax-exempt financing for a railcar manufacturing plant it is already building in Colbert County, Alabama. This is located almost 300 miles from the areas ravaged by Hurricane Katrina. The law expands the Gulf Opportunity Zone (GO Zone) to include Colbert County and Dallas County, Alabama. Pages 680-681On page 681 you’ll find the passage that increases the debt ceiling on national debt to $10,615,000,000,000. Wow! That’s a big number. That’s ten trillion, six hundred and fifteen billion dollars. I’ll take it in pennies, thank you. ”
What do auto dealerships, railcars, and the national debt have to do with the current housing crisis? Hmmmmm – maybe the rail car plant will include worker housing? Or perhaps the government is thinking that those who lose their homes could live in their cars?
[Photo Credit: www.art-contest.com]
