Fiscal Cliff: Concerns Housing Market and Economy are Second to Spending Goals by Home Destination
Minneapolis, MN (PRWEB) December 06, 2012
It has been several days since either the president or congressional Democrats signaled any interest in negotiations that both sides say are essential to a compromise. Meanwhile, Obama spoke to the executives of the Business Roundtable today prompting a statement by Jim McNerney, chairman of the and chairman and chief executive officer of Boeing Co.: “We encourage both sides to work around the clock, if necessary, to avoid the severe repercussions that inaction would have on U.S. economic growth and job creation.”
The two sides on the fiscal cliff and housing market issue have submitted proposals to cut deficits by more than $ 4 trillion over a 10 years spread, however differing strongly on to accomplish it. To bring down the staggering debt load, Republicans propose $ 1 trillion more in spending cuts than Obama, while the president wants $ 800 billion more in tax increases and $ 200 billion to boost the sluggish economy.
Home Destination’s owner, Jenna Thuening, says, “Homeowners need discretionary monies they have earned in order to buy a home, renovate their home, or even make routine repairs. We currently borrow 40 cents of every dollar we spend. Homeowners already face federal income taxes, property taxes, sales taxes, state taxes, payroll taxes, airline and transportation taxes, utility taxes, fuel taxes, alternative minimum taxes, and more. Add that to taking away homeowner’s mortgage tax breaks and many may not be able to become buyers or handle upkeep.”
The National Association of Realtors (NAR) has made a clear call for help to sustain the housing market’s progress in their Call for Action: Do No Harm to Housing. As stated on their website, “NAR’s position is that the mortgage interest deduction is vital to the stability of the American housing market and economy and we will remain vigilant in opposing any future plan that modifies or excludes the destructibility of mortgage interest”.
“Chief Justice John Marshall wrote that ‘the power to tax is the power to destroy.’ About 46 percent of the people pay no federal income taxes. A staggering number of Americans have no skin in the game. It cannot rationally be said that those who currently pay federal income taxes are not already paying ‘their fair share’. Don’t be deceived – the issue before us is not taxes. The real issue is spending. President Obama wants to raise taxes (today on one group, tomorrow on another group) because he believes in a federal government that controls every aspect of our lives from cradle to grave. He knows this requires money. Your money. My focus is on reducing spending. Some people call this a fiscal cliff. I call that progress.”
Asked if the administration was ready to go over what Federal Chairman Ben Bernanke termed as the “fiscal cliff, if Republicans don’t grant Obama the spending money he is seeking from increased taxes, Treasury Secretary Timothy Geithner was quick to answer: “Oh, absolutely. There is no prospect (for) an agreement that doesn’t involve rates going up on the top 2 percent of the wealthiest Americans,” he told CNBC. As the White House’s chief negotiator, it seems to sum up the stalemate well.
For non-profits and other agencies that are able to offer housing help due to being on the receiving end of federal money, the fiscal discussions in Washington are their lifeline. Already operating under tighter budgets following last year’s Budget Control Act, the discretionary programs funded by the federal government are certainly face some kind of cut deal or no deal. The worst consequence of the Fiscal Cliff this in the long run is taking attention away from what really needs to be done, stated Thomas Cooley, Paganelli-Bull Professor of Economics NYU. The decisions made in Washington are political; they have human consequences. We must protect homeownership. We must be able to offer housing.
Homeowners seeking housing answers and a guide while navigating the Minneapolis housing market and trying to determine best options when buying or selling a home, can reach Jenna at 612-396-7832. Home Destination is a CDPE, strongly involved in real estate matters and dedicated to supporting homeowner’s needs.