I believe one of the STRONGEST TOOLS that could be employed RIGHT NOW would be to repeal the Capital Gains Tax on Residential properties permanently. This would move the distressed properties from the banks to investors. this bold step would provide A HUGE influx of investment money by private parties into the economy and ALL the taxpayers would not have to foot the bill. By doing so it is my belief that the bailout of our current financial dilemna could be cut in half.
Did you know that 272,171 homes were in foreclosure in the United States in July alone?
Let's do the math:
272,171 in foreclosure in July. An average cost of a home is now at $212,400 as of 8/2008.
272,171* 212,400 = $57,809,1208,400, and, if we assume that in 6 months we could substantially reduce the inventory of these foreclosed homes by eliminating the Capital Gains Tax and causing a MARKET DRIVEN DEMAND from INVESTORS, then in 6 months would then be close to eliminating $346,854,722,400 of the mortgaged properties that are in Default. That is almost exactly one HALF of the amount of the bailout bill.
Also, please feel free to write your Senators and Congressional leaders if you agree. The above is ONE piece of the puzzle that needs to happen to relieve ourselves of the burden of the current mortgage problem.
Regards,
Paul and Kristi
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