|1:05 PM EDT||
Lee Terry, R-NE 2nd
Mr. TERRY. Mr. Speaker, I appreciate the opportunity to come down and speak.
Certainly in every one of our districts, the housing crunch or crisis affects everyday people. And we have to look at the best way to resolve this.
And I think what we have today is kind of a best-intentions type of bill. But I don't think it's really getting to the heart of the matter. When I have talked to several economists that specialize in the real estate markets, all have told me that when you're looking back and trying to remedy or bail out what has occurred, that you are really not going to fix the problems or stimulate the housing industry. [Page: H3287]
So I have developed, with several of my colleagues, a bill that is forward looking. It is straightforward. It is an up to $10,000 tax credit for a purchaser of a home, not a foreclosed home only or a new build only or anything like that. Just if they want to buy a new home or a home they would be eligible.
I realize that there was at least a weak attempt to something like that in the amendment that is before us now. We have got a $7,500 tax credit. But when you look at the eligibility and the fact that, yes, it is a refundable tax credit that you have to pay back, it turns out to be rather useless in trying to stimulate the housing market. This is really a faux or phantom tax credit. So I don't think that can be used to help stimulate our economy or the housing market to get us out of the housing
And one of the issues that we're talking about here today is the devaluation of our homes because of the housing depression and that what we're going to do is make up the difference of a home that has been devalued that goes into--