Tuesday, March 24, 2009
The $7000 to $14,000 bonus part of the grant is due to end in the middle of this year anyway.
Both Steve Keen and Christopher Joye agree that it should go.
That has to mean something.
The bonus adds an extra $1.5 billion per year to the cost of the existing grant.
Joye's rather nifty solution - convert the bonus and then the grant itself into loans that never have to be repaid... until the house is sold.
That way over time the annual cost to the budget will become zero.
(IRONY ALERT!) I suppose its okay for the taxes of renters to assist better-off folks to buy homes, but surely they should share in the payoff when the better-off folks move in to even better homes.