mgu, why does it result in higher taxes? 2002 prices lower the property taxes significantly. Are you saying that when there in asset bubble that pops, income taxes are increased, show me an example of when that has happened. Dot com bubble, my income taxes went down, 90’s R/E bubble, my taxes stayed the same. The dems will probably take the white house and repeal the recent tax cuts but that only brings them back to where they were and for the middle class it wasn’t that much of a decline, easily offset by cutting one’s property taxes in half. For those who don’t sell they can still appeal to have their property taxes lowered. ( no political party endorsement, hate em both, just an observation and I write in Ross Perot’s name every time cause it make me smile)
You need to stop listening to politicians with regards to a taxpayer funded bailout, if anything happens it will be more ceremonial than concrete. Both parties know that no nation has ever taxed itself into prosperity, they are just trying to get votes, turn the t.v. off until November 2008 and ignore the rhetoric.
Here’s the math, a midlle class family buys a 500k home and pays 4k a month, next year a similar will buy the same house for 250k and pay 2k a month. A 100k family doesn’t even pay 25k a year in income tax, check your 2006 taxes. But now they will save 25k a year on mortgage expenses, are you saying the income tax rates will double? Not a chance.
Final answer, lower home prices benefit the middle class, any bailout will be for show, war ends and taxes rise marginally at best, probably no more than your cable bill.
