House to Offer Plan on Housing

Washington Post (04/08/08) P. D1; Montgomery, Lori
House Democrats on April 8 are expected to introduce a tax measure to aid the housing market that is much different than the package being considered by the Senate. Both packages would allow homeowners who do not itemize on their federal taxes to take a standard deduction for property taxes and permit the use of tax-exempt bonds by state and local housing finance agencies to refinance problem mortgages, but they differ when it comes to tax breaks. The House plan would give first-time home buyers a tax credit of $8,000 if they make any residential property purchase within the next year, with the Senate tax credit applying only to the purchase of foreclosed properties. Additionally, the House plan would extend tax breaks to affordable housing developers, while the Senate plan offers tax relief to a wide range of businesses--including home builders and lenders--by allowing them to apply losses in 2008 and 2009 to federal taxes as early as 2004. According to House Ways and Means Committee Chairman Charles Rangel, D-N.Y., "We need to provide relief to the buyers and families themselves, not just the banks and builders. The House bill will put families first."