…a simple two part solution that will not cost taxpayers a dollar out of pocket
With billions of dollars flowing into various industries and no apparent results or an end in sight, what is the answer? By now, everyone is aware the root cause of the economic downturn is real estate and real estate mortgages.
The solution is simple. The first part everyone will like. The second part will not be so popular, but is an evil we will have to live with.
First, we are all aware that outside of diminishing consumer confidence largely perpetuated by the media; the biggest trouble in the housing industry is SUPPLY. There are simply too many homes for sale! How do we cure this problem? We need demand and urgency…
If Congress would enact a law making every real estate purchase completed prior to December 31, 2009, exempt from Capital Gains, investors would flee the instability of the stock market and flood into the real estate market.
The demand comes from the investors leaving the stock market and others looking to capitalize on the exemption…they have to have somewhere to put their money.
The urgency comes from this being a ONE YEAR exemption. Any home bought in the 2009 tax year will not be subject to Capital Gains Taxes when sold – EVER. With people flooding back into the market not only will inventory/supply dwindle, prices will stabilize, homeowners will regain equity lost, and much more. With regained equity and stability, consumer confidence will be improved and people will start spending money again…and in turn jobs will be created.
