The House has approved and the Senate presently will consider legislation to provide federal insurance for $300 billion in refinanced home loans. Taxpayers will have to shell out hard cash if borrowers default on this government-guaranteed debt. This new program is expected to cover just 500,000 to 1 million homes. Thus, these taxpayer-insured mortgages would average $300,000 to $600,000. This is not exactly low-income housing.
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Congress’s lavish scheme is a particularly shabby deal for renters. While politicians routinely ignore apartment-dwellers and other renters, people like us inhabit 34.7 percent of America’s 108 million households, according to the National Apartment Association. More than one third of U.S. homes are rented, yet rent payments are not tax-deductible, as are mortgages. Where is the social justice in that?
This massive bailout will suck tax money out of renters’ bank accounts and swallow savings that some are salting away for home purchases. If this plan achieves its purpose, residential prices will rise again, pushing the American Dream of home ownership back above many a renter’s reach.
Fuck you very much!
I don't mind lack of tax deductions for rent as much as I mind paying for other people (and the huge payouts to La Raza in this bill make me wonder about just who these people are...) to live large beyond their means while I live in a couple of shabby rooms in a newly crime-ridden neighborhood waiting for my credit score to improve.
If you know the government is going to pay your mortgage to keep you in your home, why bother to make a single payment? Why am I not posting this from a Colonial with a three-car garage in Cedarburg??