Posted by
Mike Silverman on Thursday, February 19, 2009 12:07:19 PM
Obama won. He likes to remind us of that when Conservatives criticize his stimulus package. But, just because he won., doesn't mean we need to stand by and allow him to drive down the economy even further with huge frivilous spending. Ostensibly, loans for purchasing homes were given to many people who could not afford them, in order to help them obtain the "American dream". At least that was the cloak in which these bad loans were made and were encouraged to be made by the Federal government telling private banks they "had" to allow this or face penalties. But, in light of this boondoggle of a stimulus that is "allegedly" somehow supposed work to undo the damage done by this policy, we all need to ask ourselves, what is that "American dream"? Is it simply owning your own home...? Or is it achieving a financial level of indpendence... that then permits you to afford owning your own home? The American dream since the country was founded has been individual freedom. Without that , we have nothing. Zip, zero, nada, nothing.The freedom to work and save for the things you want in life is inherent in the greatness of our country. People should not be thought of as "deprived" simply because they can't afford to buy and maintain a house. But.., we have a country and a population that has turned freedom on its head. Instead of being free to work hard and save and earn the things you want to have in life, many people now feel entitled to anything they want simply because they are United States citizens. It's no longer about working to achieve, but feeling entitled , demanding entitlements, and then figuring out later how to handle paying for it or be given an out with some tax funded program. As a population we seem to feel entitled to a house, entitled to a lifetime of medical care, entitled to well paying jobs, entitled to attend college, and entitled to an endless line of credit to get whatever we want regardless of the means to pay for it. This is a huge challenge to overcome. The government does not owe individuals a particular standard of living, and our earnings should not be taxed for the purpose of granting such percieved entitlements as owning a home. Now, Obama's boondoggle of a stimulus law is pure socialist manure and we should be worried that he was so easily able to get this passed through congress. The radicals like Obama have it backwards. We do not work for him, he works for us. Our job as citizens is not to provide him with an endless river of taxes to build his socialist playground with while he and his cronies decide how much of our earned money we are entitled to keep for ourselves. Cutting income taxes and captial gains taxes would be a huge boost to helping people be able to "AFFORD" owning thier own home.
If we have to have a mortgage bailout... ( and I don't think that we have to...) then here's my plan to help people who can no longer afford to pay thier mortgage. It's much better than Obama's plan... and it's astoundingly simple, and it does not penalize anyone, and it helps every home owner who has a mortgage. Tax forgiveness. Instead of taking tax money from paul to pay peter so that peter can meet his mortgage obligations, reduce all person's federal income tax by a level equivalent to their mortgage payment, to allow every person to meet thier mortgage... for the remaining term of the mortgage. After which time these people's income tax is restored to the standard level for thier income. Selling the house would require to pay back federal income tax equal to the amount that was forgiven. Make this plan optional , so that people who are paying mortgages can opt-in or opt-out at any time ( and as many times as they feel is needed) during the length of thier mortgage. This way the amount that they would have to pay back in tax upon selling the house is up to the individual who can choose at periods of time to take on the full mortgage burden himself at his normal income tax rate, thereby elminiating the tax payback for that period of time, and/or switch to the tax forgiveness option to reduce full burden of the mortgage. This also helps those who have already been foreclosed by helping them through reduced taxes to obtain a new mortgage.
- Mike Silverman