Tuesday, September 16, 2008

Harper's latest promise is empty

Oh good, another Conservative tax credit scheme.
Harper announced a Conservative government would offer first-time homebuyers a tax credit of up to $5,000 to help defray the closing costs on a new or resale home purchase.

Speaking at a construction site in Kitchener, Ont., Harper said the tax credit will help make home ownership more affordable and will help spur construction jobs.

"Our plan is simple, modest and practical," he said.

And just a little less believable than, oh, say, promising not to tax income trusts.

Before you get carried away, this isn't a $5000 return to you. It's a tax credit, so it's only really about $750 at best. And it's not applied to the cost of a house - it's applied to the closing costs - the fees associated with completing the sale such as paying for lawyers, mortgage fees, etc.

Then of course, there was a little more information flowing from the cavities of Harper's entourage. (Emphasis mine)

Conservative advisers travelling with Harper say the homebuyers tax credit is a modest proposal that will be phased in over four years which means, should Harper win another minority, there is little guarantee his government would survive that long to implement it.
Wheatsheaf has more and a very apt comparison.

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