Gregg Cosponsors Proposal to Address Housing Crisis and Spur Economy

Press Release

GREGG COSPONSORS PROPOSAL TO ADDRESS HOUSING CRISIS AND SPUR THE ECONOMY

U.S. Senator Judd Gregg (R-NH), ranking member of the Senate Budget Committee, today joined Republican colleagues as a co-sponsor of the Home Ownership, Manufacturing and Economic Growth Act of 2008 (HOME) to aid millions of Americans hurt by the downturn in the economy. The proposal helps homeowners struggling with the housing market, while offering tax and regulatory relief to individuals and small businesses.

"I am especially pleased to see that this plan would spur consumer confidence by providing a $15,000 tax credit for anyone purchasing a new home, a foreclosed home or a home where foreclosure is pending," said Senator Gregg. "This measure would help reduce our record-high housing inventories and stem the slide in home prices that are affecting homeowners across the country. It also would provide a big boost of confidence for our housing and credit markets and help energize the economy.

"I also am glad to see that this proposal encourages productivity by extending the 2001 and 2003 pro-growth tax policies. I am hopeful that language included in the HOME Act to increase flexibility for U.S. manufacturers and lower taxes for job creators would spur job growth and prevent our jobs from going overseas."

Specifically, the HOME Act would:

* Stop the threat of tax hikes on all taxpayers
* Prevent the middle-class tax grab
* Keep jobs at home by lowering taxes on job creators, and bring jobs from overseas back home to the U.S.
* Increase accessibility to small business incentives and enhance employee benefits
* Keep America globally competitive by reducing excessive regulation and litigation
* Increase the value of homes and prevents an unfair tax on the sale of homes
* Help communities and homeowners prevent foreclosures through providing credit stability
* Stimulate economic growth by preserving jobs and generating capital to weather the current economic storm and remain financially viable
* Protect small businesses from excessive and frivolous lawsuits
* Protect consumers from rising prices resulting from frivolous lawsuits

"Although there is no instant panacea for the state of the economy, the HOME Act is a broader and better solution to our country's fiscal woes over the long term than what we've seen from the majority party," said Senator Gregg. "By helping homeowners and providing tax relief to individuals and businesses who need it most, the economy will receive the economic support it needs."

Earlier this year, Senator Gregg successfully enacted into law legislation that will help the millions of Americans hurt by the housing downturn. That law offers temporary tax relief to encourage individuals and their lenders to negotiate alternate payment solutions to avoid foreclosures. It now permits any homeowner who obtained a mortgage before January 1, 2007 to receive mortgage forgiveness from their lender, tax free. The law covers restructured mortgage agreements entered into after January 1, 2007 and before December 31, 2009. The tax forgiveness is available on mortgage indebtedness of up to $1 million.

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