Majority Leader Harry Reid’s office just sent me an outline of the Senate Democrats’ plan to extend and expand the home buyer tax credit. Much of this was covered in my previous blog post. But there’s one new detail that hasn’t been reported elsewhere. It will cost $10.8 billion over 10 years. That’s a bit more expensive than the existing credit, which will have cost taxpayers about $8.5 billion by the time it expires Nov. 30.
Some more details:
*It will be attached to a bill to extend unemployment benefits, but that it’s not clear when it will be voted on.
* First-time buyers (those who have not owned a home for three years) can claim an $8,000 credit. Homeowners who have lived in their current residence for at least the past five years can claim up to $6,500.
*Income limits: $125,000 a year for individuals, $225,000 a year for married couples.
* The proposal will include anti-fraud measures, including minimum age requirements and additional authorities for the IRS.
I ran the $10.8 billion figure by Moody’s Economy.com chief economist Mark Zandi, who hasn’t yet estimated the costs of the current plans. He said “that sounds in the ball park.”
