Innovative ways to stimulate the economy: A transferable homebuyer's credit


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Under the most recent economic stimulus package, first-time homebuyers are eligible for a nonrepayable $8,000 tax credit if they buy a home. The rationale behind the credit is a growing consensus that a rebound in housing will be crucial to any economic recovery.

CNBC anchor Dylan Ratigan had a great suggestion for a housing tax credit: Provide every active member of the U.S. military with a $50,000 transferable homebuyer tax credit. If they don't want to buy a home, they can sell the credit to someone who does and keep the cash. The idea behind this plan is that the effort to prop up the housing market would benefit people in the armed forces -- not people who lied on mortgage applications and bought homes they couldn't afford.