WASHINGTON, DC – Today, Congresswoman Carol Shea-Porter urged House Leadership to extend the tax credit for first-time home buyers and to consider including a smaller credit for other home buyers. In a letter to Speaker Nancy Pelosi and Majority Leader Steny Hoyer, Shea-Porter outlined why extending these credits would be beneficial to the housing market and help with our economic recovery.
A fully copy of the letter is below:
October 9, 2009
The Honorable Nancy Pelosi
Speaker of the House
H-232 US Capitol
Washington, DC 20515
The Honorable Steny Hoyer
H-107 US Capitol
Washington, DC 20515
Dear Speaker Pelosi and Majority Leader Hoyer:
I write to urge that the House of Representatives take quick action to extend the tax credit for first-time home buyers, including the important changes made in the Recovery Act, and consider including a smaller credit for other home buyers as well. In these tough economic times, Congress must continue to enact sound fiscal policies that help our economy recover. The Recovery Package is working, and we should not let this important tool expire.
The tax credit for first time home buyers has obvious benefits for the housing market and the economy as a whole. Some 400,000 home sales have been directly attributed to the tax credit. Those purchases lead directly to increased sales of home appliances, furniture, and other household items. The National Association of Realtors has estimated that every home purchase injects more than $60,000 into the economy. All of this leads to companies retaining or creating more jobs. Creating a smaller tax credit for other home buyers could lead to even greater economic benefits and job creation.
The 111th Congress has faced uncharted economic territory. Congress must continue to carefully weigh the benefits and costs of every piece of fiscal policy. I believe the tax credit for first time home buyers has proven to be a reliable and sound investment, and Congress should immediately extend and consider expanding it.
Thank you for your continued leadership and for your attention to this most important matter.
Member of Congress