Mar 13, 2008

The Mortgage Mess Not getting better: Tax Policy Broken?

I have been reading about how the mortgage mess is not being solved by the current mortgage relief plan and I keep referring back to the blog entry on this website after the tax relief package for foreclsoures was passed.

Bush passed a relief package for 2007-2009 for home foreclosures and forgiveness of indebtedness income. What is the effect of giving an economic incentive to foreclose?? naturally, more foreclosures....

You have to begin to wonder if the tax rebate package has the same lack of thought. There are many critics on whether the rebate will actually stimulate the economy. I have heard many state that the funds will be used to pay off debt- and will be funded by more debt (i.e. government bonds purchased by overseas investors).

In any event, the many foreclosures are going to creat many tax debt questions. The maze of tax complexity just is another addition to the mortgage mess.

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