At the end and beginning of each month – you have asked your supporters, to send you evaluations on how government is working. And it has been your leadership that has been the most transparent government in recent memory. The housing market is in need of a revival and life, and it’s because of this I am writing to you. The first time home buyers credit should be extended—since many of those who qualify for it, didn’t apply for the credit before it expired in 2010.
Renewing the First time homebuyers’ credit will allow those whom never brought a home, a change to purchase an affordable house. One that meets their standards and it’s because of those based credits—your administration should work harder on combining the lesser of the two evils. Homeownership, and rental assistance – has been one of the levied problems congress, and state leaders have failed to act on. As of right know under the Tax Reform Act of 1986: the Low-Income Housing Tax Credit would expire in 2017 completely, and states have been slowly removing the program from the system. What is the LIHC?
LIHTC; (often pronounced "lie-tech") is a dollar-for-dollar tax credit in the United States for affordable housing investments. It was created under the Tax Reform Act of 1986 (TRA86) that gives incentives for the utilization of private equity in the development of affordable housing aimed at low-income Americans. LIHTC accounts for the majority of all affordable rental housing created in the United States today. The credits are also commonly called Section 42 credits in reference to the applicable section of the Internal Revenue Code. The tax credits are more attractive than tax deductions as they provide a dollar-for-dollar reduction in a taxpayer's federal income tax, whereas a tax deduction only provides a reduction in taxable income. The "passive loss rules" and similar tax changes made by TRA86 greatly reduced the value of tax credits and deductions to individual taxpayers. As a result, almost all investors in LIHTC projects are corporations.
And by allowing the private sector to be able to get TEBs which are Tax Exempt Bonds; so those whom wish to engage in working with the internal revenue system on bonding out funds needed to purchase property, or control their adjustable rates on their rent in subsidized programs under the Department of Housing and Urban Development.
As of right now, (S) corporations and other small business don’t qualify for some of these bonds under the Internal Revenue Service. And allowing sole trading companies – who are the economic engine of this country, a chance to invest into their base – by using their tax base in which they filed for a profit or lose sheet; so they can expand. Helps some businesses that are having troubles, or troubled assets that the top five banks in the world reject to offer anything – will allow them to bond out those properties and invest into their tax base. Meaning, if you own an online business, and you want to expand your business to be a brick and mortar establishment—you can have that chance to use your profit and lose sheets to purchase into a pre-paid bonded credit or deduction.
This program does cost the tax-payer money to fuse the program. It does require patients as the return benefits would bring in an estimated revenue. And that’s the honest opinion on the program—since banks are not helping the burden on keeping business—first time homebuyers, and entrepreneurs in their establishments—or help them build an establishment. It helps those that are going through a local government made revaluation the need and change to finally have that upgrade. It will cost the American Economy more than $33 billion dollars to implement such a program, yet over time—the government would make $34.4 billion. And this program isn’t something new – it’s already in the system, which is subjected to be dissolution because the money wasn’t allocated there.
State and local governments are not educated enough on the roles and rules of TEBs and most (S) Corporations would need their annual budgets, or tax liabilities approved by their local municipality. As the local municipality are condensing services – those whom are educated enough to understand what the roles of this program actually do – are not sitting in the office they once held.
So by creating a public to private partnership saves the tax-payer the burden of cost, by shifting the burden to interested entrepreneurs—while using their tax base to stay in business, keep a roof over their head, or expand from a mobile service to a brick and mortar service. That’s what the American Dream means, which will help street vendors and other entrepreneurs a valid shot at expanding their dreams and base with innovation and American engineering.
Paid For By: Coaches! 101 (PAC) PO Box 4463 Jersey City NJ 07304
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