It's Almost Over

Last night the extension of the Bush Tax plan was extended, and I learned this morning that Harry Reid had pulled the Omnibus plan from the floor.

Should we consider these Victories for Conservatives ?

Should we perhaps take a breath and relax now and enjoy the Christmas break with the knowledge that possibly with the addition of the new Republican blood that enters D.C. in a few days, things may take a turn for the better ?

What bothers me the most about our current condition, is that when any information a conservative, or someone that is not part of the "progressive " movement presents to prove that an idea is bad, a decision is wrong, or a policy will cause more damage, then the person becomes labeled as crazy, a hatemonger, a racist, and just plain attacked by the left wing machine.

Yes, Obama has been getting some time from the people on SNL, and the late night talk shows, but here we sit with an administration that promised a lot of hope and change, and now all we have is the hope for the change that is coming .

We all know what the problems are, why not just stop trying to offend and get them taken care of ?

I sit here and look at my Christmas Tree, and my two young boys getting ready to go play in the snow, and thank God that my little corner of the world is safe and secure for now, but in the back of my mind I know that there are people in Washington that do not think my opinions are credible, and that worries me, and it makes me worry for my children .

There are 14 days left until the new year, and the new crop of Republicans go to work.

It's almost over,

or is it ?

Merry Christmas

What have they done now?

I have been reading the last few days about the mortgage crisis we are now involved in, and came across the three new tax changes that are part of the housing rescue and foreclosure prevention act of 2008, that was signed into law July 30th. The first two are intended to be help full, and the third can be damaging.

The first is a tax credit of up to $7500.00 to qualified buyers of principal residences. The maximum credit is 10% of the purchase price, or $7500.00, whichever is the lesser. The credit is refundable, and that means you can use it to offset your entire federal income tax liability. This credit is only available between April 8, 2008, and July 1, 2009. Sounds good so far,BUT, and there's always a but, you can't use it to reduce the alternative minimum tax

The credit cannot be used by high income singles who's income is

$75,000 or above, or couples with $90.000 or above. Well, that sounds OK. Yeah, that's what I thought, but here is the kick in the pants. You have to REPAY the credit ! If you take the credit, you have to repay the money, minus interest, starting in 2010, at $500 dollars a year. And if you die, or sell the house before it is paid, then you are responsible for the remaining money all at once. This sounds like its adding to the problem to me, and it sounds a lot like what got us in this position in the first place.

The second change is really not a big deal, but you do not have to pay it back. It allows unmarried people to claim up to $500 dollars of their state and local property taxes to their normal standard deduction, and married people can add $1000, as long as it does not exceed what you actually pay. Like I said before, not really a big deal, but is is a little help.

The third change is sort of a punishment. Until now, you could convert a former rental property or vacation home into your principal residence, live in it for at least two years, and then sell it. You would then qualify for the federal home sale gain exclusion. This tax saving loophole is being closed up through the Housing act, and punishing sellers for post-2008 periods when the property is not used as your principal residence. After 2008, if you live in a home that was originally owned, but not your principal residence, and then try to sell for profit, you would have to pay the capitol gains tax. I do not believe the changes will affect the housing market, or make home ownership any easier. The lenders that were giving loans to people they knew that could not afford them seem unaffected by these changes. I wonder, what exactly is Congress thinking ? They offer a $7500 dollar tax break to consumers, but make you pay it back ? Will the banks that are being bailed out have to repay the government ?