POINT OF VIEW by NLIHC President Sheila Crowley
 
From: drv@ici.net  (NHOYO Listmaster)


Date: Mon, 24 Feb 2003 11:32:01 -0500
From: "Barbara A. Gilley"

:
POINT OF VIEW by NLIHC President Sheila Crowley


One of the several taxes that the President wants to cut is the one on
stock dividends. The dividend tax cut proposal has created considerable
and justifiable consternation among low income housing advocates and
everyone else who has an interest in the Low Income Housing Tax Credit. If
the dividend tax cut is enacted, investment in tax credits is predicted to
plummet, as corporations will no longer be motivated to seek the reduction
in taxes that the LIHTC affords. Production of affordable rental housing
financed by the LIHTC will come to an abrupt halt. Indeed, according to
some experts, even the prospect of the dividend tax cut has reduced
investment in the LIHTC.

Initially, it seemed that the extensive bipartisan support for the LIHTC
would protect the program. The adverse effect on the LIHTC was
characterized as an "unintended consequence" of the tax cut proposal, and
once the implications were brought to the attention of the Administration,
they would reconsider, or so most people thought. Unfortunately, there is
little evidence of concern by Administration officials about the impact of
the dividend tax cut on the LIHTC.

Some major housing organizations are now distancing themselves from the
effort to save the LIHTC for fear of being perceived as opposing the tax
cut and thus incurring the wrath of the White House. Many others are
urging that the LIHTC be protected in the tax cut legislation, and are
proposing ways to create a "safe harbor" for the LIHTC.

The first position reveals nothing short of disregard for affordable
housing and the people who rely on it. The latter position may be based in
a sincere desire to preserve the major resource for production of
affordable rental housing, but is woefully shortsighted.

The dividend tax cut will cost $385 billion over 10 years. The 2001 tax
cut is costing $1.3 trillion over 10 years. Other tax cuts the President
is now proposing will cost another $1.6 trillion. Meanwhile the federal
deficits for this year and next are projected to be more than $300 billion
each year, with only more red ink to come every year after that,
necessitating domestic program stagnation at best and starvation at
worst. With state and local budgets in serious deficit as well, mounting
federal deficits are accurately characterized as reckless and irresponsible.

What is more, more than 70% of the proceeds from the dividend tax cost
will accrue to the top 5% of the wealthiest Americans. And although the
President presents the dividend tax cut as part of his economic stimulus
plan, its stimulus effect is much in doubt. The doubts were confirmed when
Federal Reserve Chairman Alan Greenspan agreed the dividend tax cut would
not help the ailing economy in his Congressional testimony on February 11,
2003. Undaunted by Chairman Greenspan's lack of enthusiasm, much less
grave public concern over the mounting federal deficit, the President is
campaigning extensively to convince the American people that this tax cut
is in their best interest.

Fighting to save the LIHTC while professing support for or even neutrality
on a tax cut that will be ruinous for all other low income housing
programs, let alone low income people, is an indefensible position. These
tax cuts are bad public policy. Anyone who cares about low income people
and the future of low income housing should oppose them loudly and often.


----------------------------------------------------------------------------------------

NHOYO is a moderated informational list. It consists of disability issues
concerning, but not limited to: Individuals, Home ownership, and Affordable
housing. If you would like to be on our mailing list, send an email message
to: <"MailTo: drv@cisunix.unh.edu " stating your wishes.

Since this is not a discussion list, you will not be able to send questions
directly to the list. However, if you have any information that you feel is
relevant to this list, please feel free to send this information to:
drv@cisunix.unh.edu  If we feel this information is appropriate, we will post
it to the list.

 
Visit http://chance.unh.edu  for information on home ownership for people
with disabilities.

---------------------------------------------------------------------------------------------





Date:        
Mon, 24 Feb 2003 11:32:01 -0500
From:         "Barbara A.Gilley" <bagilley@EARTHLINK.NET

:
POINT OF VIEW by NLIHC President Sheila Crowley
One of the several taxes that the President wants to cut is the one on stock dividends. The dividend tax cut proposal has created considerable and justifiable consternation among low income housing advocates and everyone else who has an interest in the Low Income Housing Tax Credit. If the dividend tax cut is enacted, investment in tax credits is predicted to plummet, as corporations will no longer be motivated to seek the reduction in taxes that the LIHTC affords. Production of affordable rental housing financed by the LIHTC will come to an abrupt halt. Indeed, according to some experts, even the prospect of the dividend tax cut has reduced investment in the LIHTC.
 
Initially, it seemed that the extensive bipartisan support for the LIHTC would protect the program. The adverse effect on the LIHTC was characterized as an “unintended consequence” of the tax cut proposal, and once the implications were brought to the attention of the Administration, they would reconsider, or so most people thought. Unfortunately, there is little evidence of concern by Administrationofficials about the impact of the dividend tax cut on the LIHTC.
 
Some major housing organizations are now distancing themselves from the effort to save the LIHTC for fear of being perceived as opposing the tax cut and thus incurring the wrath of the White House. Many others are urging that the LIHTC be protected in the tax cut legislation, and are proposing ways to create a “safe harbor” for the LIHTC. 
 
The first position reveals nothing short of disregard for affordable housing and the people who rely on it. The latter position may be based in a sincere desire to preserve the major resource for production ofaffordable rental housing, but is woefully shortsighted.
 
The dividend tax cut will cost $385 billion over 10 years. The 2001 tax cut is costing  $1.3 trillion over 10 years. Other tax cuts the President is now proposing will cost another $1.6 trillion. Meanwhile the federal deficits for this year and next are projected to be more than $300 billion each year, with only more red ink to come every year after that, necessitating domestic program stagnation at best and starvation at worst.  With state and local budgets in serious deficit as well,mounting federal deficits are accurately characterized as reckless andirresponsible.
 
What is more, more than 70% of the proceeds from the dividend tax costwill accrue to the top 5% of the wealthiest Americans. And although the President presents the dividend tax cut as part of his economic stimulus plan, its stimulus effect is much in doubt. The doubts were confirmed when Federal Reserve Chairman Alan Greenspan agreed the dividend tax cut would not help the ailing economy in his Congressional testimony on February 11, 2003. Undaunted by Chairman Greenspan’s lack of enthusiasm, much less grave public concern over the mounting federal deficit, the President is campaigning extensively to convince the American people thatthis tax cut is in their best interest.
 
Fighting to save the LIHTC while professing support for or even neutrality on a tax cut that will be ruinous for all other low income housing programs, let alone low income people, is an indefensible position. These tax cuts are bad public policy. Anyone who cares about low income people and the future of low income housing should oppose themloudly and often.



----------------------------------------------------------------------------------------

NHOYO is a moderated informational list. It consists of disability issues
concerning, but not limited to: Individuals, Home ownership, andAffordable
housing. If you would like to be on our mailing list, send an emailmessage to: <"MailTo:drv@cisunix.unh.edu"stating your wishes.

Since this is not a discussion list, you will not be able to sendquestions
directly to the list. However, if you have any information that you feelis
relevant to this list, please feel free to send this information to:
drv@cisunix.unh.edu If we feel this information is appropriate, we willpost
it to the list.

If you wish to be removed from this list please send an emailmessage to:<"MailTo:drv@hopper.unh.edu"stating your wishes.

Visithttp://chance.unh.edufor information on home ownership for people with disabilities.

---------------------------------------------------------------------------------------------

 



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