Home and car buyer credits - more welfare for the rich

Cody, Both bills are worthless pandering bills. The housing credit doesn't work because interest rates are up 1% so very few are refinancing. As for the car bill, the "subsidy" is basically worthless to a car owners whose trade in value is about 4,500. If one is truly driving a POS car worth $500, then they're likely not able to qualify for a new car lease or loan. So the number of individuals impacted by either of these programs is very very low.

I rent, drive older cars, have no debt. I lived the American Dream until I was stung last year and had to sell it low and use my 401K to close. Now I have become educated and understand the truth. I have the means to buy another house if I want to be creative, but I believe what is going on is wrong. The next time I lay my money down, it will be own my own back, not the taxpayers back. The mortgage write-offs are not that great anyway and you loose your freedom to move. With a lease, you can move in s short time.

Well, any auto dealer is going to be looking at maybe keeping a small fleet of junkers on hand -- rather than wholesaling trade-ins they have less than $500 in, maybe they'll be buying them. Customer buys a junker 1st, then trades it in, whether it ever left the lot or not. Customer gets government rebate -- dealer get profits from sale, plus profits from paperwork, plus profits from financing, plus gets to charge a premium for the new car because the customer is only watching that rebate, thinking they got away with scamming the gov.

Hi Cody - "love your show" as they say - I forget where you are based out of, but I live in the great Socialist State of Kalifornia where the state budget is run by (and has been for years) the DEMONCATS & state employee unions who live to spend more than they take in even though we have a state constitution (there's that C word again) that mandates a "balanced" budget.... and a Goveneuter that actually said (into a mic no less) that the $5-10 Billion a year that he admits illegals cost the state didn't matter in the big picture. Please at least look that stuff up before you paint everyone here with the same mindless overspender paint bomb. I hear BO saying that the only way to get us out of the problems caused by over borrowing and over spending is to over borrow and over spend even more - maybe even by a factor of 4! YABBADABBADO! I think the best way to cash in on that deal is to take advantage of the housing and car tax credits and then get a 105% loan backed by the government! WOWIE - that gal was right "if I help BO he'll help me" new car, new house, free government loan! SWEET. If you can't beat them, might as well join the party - right? I meant that is what you were suggesting - right? Speaking of fairness - I'd go with a flat tax with no deductions 1 page tax form. Everyone uses the basic services provided by government, (military, etc) except that those of use that currently PAY the majority of taxes use most social services the LEAST. What's fair about that?

40% of the earners in this country don't pay federal income taxes. Gut feel tells me that that group is disproportionately "renters." So to suggest that the "poor" are subsidizing the ownership class would appear to be an attractive populist claim but probably lacking support from the facts. Now if you want to argue that those of us who already own a house/car and paying taxes are subsidizing the purchases of others for the purposes of buying votes, I'm with you.

Time for a Constitutional Convention.

Cody: I am astonished at your ignorance, maybe that long hair is clouding your brain. Or are you saying this commentary to get a rise out of people like myself. age 60 worked since i was 9 income 150k a year,,,,,,,,,,,and I pay for everything I have I took the risks and you think I should give the rewards to people that sit on their ass and complain that the mommy goverment is not doing enough for them, both my sons put themselves thru college working 3 jobs, now that they are making decent money 70 to 90k.......my sons the do somethings should continue the tradition of giving to the do nothings!!!!!!!! Cody wake up and write something intelligent, or get a new career.

If you don't pay any taxes, you can't complain about not getting a tax break. Lets never forget that the top 10% of taxpayers are paying 75% of all the taxes in this country.

Here's my question: What happens to the used car market in the <$4,500 range after this? Forget the "fairness" question of if the "rich" should be getting this credit, while the poor do not, what happens to the cars worth less than this cut off? I guess we're now just saying you don't have to trade in a car to get the $4500, so what happens to the nearly-new used car market? Is it now going to be the case that a 3 month old car with 2K miles is of a higher cost to buy than a brand new car off the lot? Isn't that just going to mean the entire car market ends up getting artificially pushed down by this government credit (hurting those looking to sell a slightly used vehicle)? If so, when does it end? Much like this $8000 first-time home buyer credit, who it hurts most is the people on the edges looking in. Now people that bought two months to early or late payed more for the house or car than others (again this really would hurt in resale). All only because of some political whim intended to prop up a bubble or a failing auto company. This erodes consumer confidence and causes people to shelter their money in fear or hope that the government brings a long a new different plan to suit them better....

Why don't they just make the first $50k an individual earns untaxable? I'm sure the very wealthy would complain but it would be "fair" because EVERYONE would get exactly the same benefit. I make under $50k per year and I pay a disproportionate amount of taxes because I have no dependants. Some families get more tax money refunded than they paid in the first place, I get very little in return and I pay through the nose.

It is very interesting to view the article and debate within these comments. It gets difficult to sort out sometimes. How about government keep hands off and let free markets sort it out.

You have got to be kidding me. There is no more unfair tax than that which has 5% of the top end of taxpayers forking over at least 75% of income taxes. Renters don't have to pay for upkeep, homeowners insurance, mortgage insurance, flood insurance, and a host of other costs. Sometimes their utilities are included as is garbage, snow plowing, grass cutting, ad nauseum. In today's market, a renter can get a whole lot for his money.

Cody, if you actually own your home, the only tax deduction is the property tax. If you borrow the money to purchase your home, you technically don't own it until the mortgage is paid, but you do get to deduct the mortgage interest from your taxable income. So you must pay Uncle Sugar the same whether you rent or own excluding the property tax deduction. If you mortgage (borrow), then the government lets you deduct the amount you pay to their very good friends, the banks. Just wanted to clarify the use of the word "own". In the end, it is all about sheering.

You need to consider both halves of the 'fairness' equation. With a progressive tax system, the rich (as you're labeling them here) are paying a disproportionate amount of tax for the benefits the government in providing them. While it is unusual to see that group as the beneficiary of anything the government does, its difficult to feel bad for the poor renters who so often aren't paying their fair share to begin with.

This is your tax dollars trying to entice you into buying overprices cars. The down economy is making websites like www.repofinder.com gain in popularity because you can buy that same car at your local credit union for half the price. Our politicians are nuts.

That car purchase credit isn't allowed to anyone making $200k a year last time I read the draft of the proposal. So, which "rich" folks are you speaking of? And most taxpayers making $50k a year or less pay very little taxes, so I don't get your point. Who's rich in your definition? Some making $50k or even $100k? What are you talking about?

I am one of the renters and I won a 2000 Honda that is paid for. I have been responsible and pay all my credit cards on time. I really agree with what your saying and have had these same sentiments. I feel like I'm really getting robbed. And by the way, I take home 20,000 a year after taxes, have health expenses because my employer plan covers only the basic expenses. I really feel like the working poor. I am 57 years old and am going to retire and still work at 62.5 because of all this. I'm really discusted with all the congress and president for the way they are forgetting about people like me.