With 1.9 million first-time buyers, the total cost of the tax credit will be $15.2 billion. Divide $15.2 billion by 350 thousand, and the program cost $43.4 thousand per additional buyer. The actual number could be much higher if there were fewer additional first-time buyers than the NAR's estimate - or if the overall cost is higher (more buyers claiming tax credit).
This is the actual cost per additional home sold. And since buyer interest will fade (like with the Clunkers program), the cost per additional house will increase sharply if the program is extended.
Wednesday, September 02, 2009
The REAL costs to Taxpayers of auto and housing
tax credits. For autos, its not $4,500, its $7,200. For the first time housing credit, its not $8,000, it is $43,500.
Posted by Ben Cunningham at 8:34 AM