Financial News: Changes to the House Economic Stimulus Bill

Last week, the U.S. House of Representatives passed an economic stimulus bill. Before it becomes law, however, the bill has to make it through the Senate. And this week, the Senate has added a number of changes to the bill — many of them doing with tax benefits and the housing market. Here are some of the changes being added to the economic stimulus bill:

• $15,000 tax credit for buying a home. This is by far the biggest change. Instead of a $7,500 tax credit for first-time hombeuyers, the Senate wants to double the tax credit, and make it available to anyone buying a home.
• 4% mortgage interest rate. This would be a temporary measure designed to make home mortgage loans more affordable. When combined with the tax credit, there is hope that this could really stimulate the housing market — helping lead to an economic recovery.
• Tax break for buying a new car. If Americans buy a new car (it can’t be used) they could get a tax break, as well as a deduction for interest paid on the auto loan.

Changes are definitely on the way for the economic stimulus bill (it’s already gained $1 billion in costs), and there is increased optimism that it really will help the U.S. economy — and the rest of the world.