Let’s face it, sometimes politicians say the dumbest things.
And on March 25, 2010, Ron Paul (R-TX) may have taken first prize in the Stupidest Thing a Politician Has Ever Said contest.
That was the day Representative Paul introduced the Homeowner Tax Credit Extension and Expansion Act.
Here is part of his statement to the Speaker of the House made upon introducing his legislation:
Madam Speaker, today I introduce legislation to permanently extend the first-time homebuyer tax credit and to make the credit available to people whose homes have been destroyed by a natural disaster, such as a hurricane. (my emphasis on permanently)
Now in and of itself, permanently extending the first time homebuyer tax credit is pretty dumb. Let’s not even ponder how the heck to pay for a permanent $8,000 tax credit. Since when has how to pay for something bothered the politico? I’ve said here many times that this tax credit needs to die, and that free market forces need to be allowed to run their course. That such a permanent tax credit would come from a politician that bills himself on his own re-election site as, “the nation’s leading defender of free markets” makes this proposed legislation even more ludicrous.
But that’s not the truly stupid thing…
From the same address to the Speaker comes this pearl of wisdom:
Renewing the first-time home buyer’s credit will help Americans purchase a first home with their own money, instead of having to rely on government-funded or backed programs.
Huh???
Read that again…
Renewing the first-time home buyer’s credit will help Americans purchase a first home with their own money, instead of having to rely on government-funded or backed programs.
“With their own money”? What the hell? Maybe I’m just an idiot, but isn’t a tax credit like… Not. Their. Own. Money. Recall the first-time homebuyer credit was fully refundable. If your tax liability was zero, you still got an $8,000 refund check. That wasn’t your money. That was other taxpayers money.
“Instead of having to rely on government-funded or backed programs”? OK, so I suppose technically a permanent tax credit isn’t “government funded”. It’s taxpayer funded. You know, by you, and me, and our children and grandchildren.
You’ve got to be kidding me Dr. Paul.
You stand on the House floor and say renewing (permanently no less) a tax credit “will help Americans purchase a first home with their own money”.
Seriously?
Well thanks Mr. Nation’s Leading Defender of Free Markets. That just makes perfect sense.
And I’m sure the fact that Dr. Paul is running for re-election this year has nothing to do with the introduction of this legislation…
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{ 24 comments… read them below or add one }
Politicians amaze me when they think of things like this. How that can be talked about as “their own money” is beyond me, as well.
Free markets don’t necessarily mean “free stuff” for all. Right?
Thanks for sharing this little pearl of wisdom Jay…
Hey man, Don’t mess with Texas.
LOL, Oh Ron Paul. Without going into the myriad of reasons why the tax credit was never (and will never) be a permanent solution (I actually wrote an article on BP about it), this is the best political quote I have heard in quite a while. If the whole politics thing doesn’t work out, perhaps he can teach logic-based semantics.
Amen Jay.
It’s sad when somebody who supposedly “gets it,” can’t find his a$$ from a hole in the ground.
Sorry Jay.
Your TV and internet must have been broken while some of these quotes were spewed…
http://www.youtube.com/watch?v=IZSetmA6u2E
http://www.youtube.com/watch?v=3Pd9v1fdF7Q
http://www.youtube.com/watch?v=Xa9GN1ul50c
Good point.
WOW the stupidity is down right amazing. Doesn’t he hear himself when he is talking? We need an intelligence test before you are allowed to run for office.
Ron Paul is a smart guy, but I have no clue what he was thinking with this one. He’s really got some pretty good ideas, but he is first and foremost a politician. And he’s up for re-election. Saying, “I sponsored a bill to extend the tax credit, and apply it to those in a natural disaster too!” *will* get him the two things any politician wants most in an election year: mentions in the press, and votes.
This is so unfortunate… Paul has some of the best ideas in Congress, one of the VERY few members that isn’t lobbied extensively by the TBTF banks and corporations, hates corporatism running this country, understands the monster the Fed is, wants expanded freedom and liberties… And then he comes out with this.
I’m a big fan, but this was bad.
I would still take him over 99% of everybody else we have in there now.
“I would still take him over 99% of everybody else we have in there now.”
Me too.
Okay Jay, were you trying to be clever here? If so, fail.
When you pay taxes, who’s money are you paying your taxes with? Your neighbors? Even if I get a full refund on the credit, are we now going to split hairs and figure out exactly who’s tax dollars I was actually given? I mean common, lets be real here.
Further more, no one has a Zero Tax Liability in this country, unless you are illegal. Just because you don’t have to pay more at the end of the year, you still pay taxes.
I think you really missed the overall point here Jay. Dr. Paul already knows the Govt. is deep in our pockets, and he has always fought to allow the people to keep as much of THEIR money as possible. Sometimes you have to actually play the game to get ahead, you know?
Saying that the credit should be completely removed, while I agree with you there, is no different than throwing a deck chair off the Titanic with regards to it’s impact on the free market.
Cory – I’ll gladly concede that using an example of a zero tax liability may have been a poor choice for an example.. It’s clearly the extreme. But I would argue that many people do indeed have a zero tax liability, and MANY more have a tax liability of less then $8K, especially people that are first time home buyers.
In 2006 (the last year I can find data for), a married couple filing jointly with three kids with an Adjusted Gross Income of $50K had an average tax liability of ($395) — that’s *negative* $395. (Source: http://www.taxpolicycenter.org/numbers/displayatab.cfm?Docid=1432)
I don’t think it’s much of a stretch to see a $50K AGI 3 child couple as first time home buyers.
That same source shows a 2 child couple with an AGI of $75K has an average tax liability of $3,995.
So if either of these couples gets a $8K refundable tax credit, who is paying a significant chunk of it?
We are.
I agree that Ron Paul has done more than almost anyone to return tax dollars to the people. But he stepped on it this time. And you’re right, eliminating the tax credit won’t fix the real estate market, but the government has GOT to stop mucking about in it and let it play it’s course. Not bringing back a tax credit is just one, of several, steps in that direction.
Corey got it.
Dr. Paul was illustrating the fact that the money isn’t the government’s; it’s the individual taxpayer’s. It’s not a re-election trick. It’s Paul’s way of trying to work within the system to slowly erode the income tax.
Crafty.
You can label it crafty Brain. I’m still calling it stupid. And I’ll bet you $10 that in some re-election stump speech he points out that he tried to permanently extend the home buyer tax credit…
A Libertarian proposing a permanent tax credit? It’s GOT to be election season. So funny it’s tragic.
This politician could not be any dumber if you ask me!
“And I’ll bet you $10 that in some re-election stump speech he points out that he tried to permanently extend the home buyer tax credit”
You have to read Ron Paul to understand his motivations, Jay. He serially attacks the income tax from different angles. The key phrase that tells me this is “with their own money”. Ron Paul says this because he rejects the theory that the State has a claim on people’s income. Had he NOT said that phrase, I’d suggest you were right. Watch for that language should he use this in campaign speeches. If it’s absent, you’re worst suspicions are correct.
“OK, so I suppose technically a permanent tax credit isn’t “government funded”. It’s taxpayer funded. You know, by you, and me, and our children and grandchildren.”
You’re absolutely correct UNLESS…you reject the Sixteenth Amendment (like Ron Paul does)
I think what Paul is doing is working within a broken system to allow markets to adjust naturally. IOW, a permanent first time home buyers tax credit will not create a short-lived feeding frenzy, like we just saw, but will create a business as usual atmosphere. His comment about using your own money makes sense when you look at it like that. People, thinking people that is, understand that taxes are our own money, but a quick tax credit is often presented as a govt tax credit. That kinda sounds like OPM, which is a stupid game that politicians play.
Having said all that, I disagree with him, and I can’t explain the natural disaster credit, which does carry the stench of rotting political pork. When you move into an area prone to natural disasters, and these are well documented by now, you must be prepared to shoulder those risks yourselves.
Corey got it.
Dr. Paul was illustrating the fact that the money isn’t the government’s; it’s the individual taxpayer’s. It’s not a re-election trick. It’s Paul’s way of trying to work within the system to slowly erode the income tax.
do yourself a favour, don’t vote to this guys again! and im totally agree with “Having said all that, I disagree with him, and I can’t explain the natural disaster credit, which does carry the stench of rotting political pork. When you move into an area prone to natural disasters, and these are well documented by now, you must be prepared to shoulder those risks yourselves.”
thanks
I think Ron Paul’s problem is that he’s such a purist that he says things without really thinking. Far from being calculated, I think he is so infatuated with his own crazy thought process that he will say almost anything regardless of the consequences. I don’t know which statement was dumber, the permanent tax credit or his remarks advocating that corporations should be able to ignore civil rights laws.
Free markets don’t necessarily mean “free stuff” for all. Right?
Thanks for sharing this little pearl of wisdom Jay…
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Dr. Paul was illustrating the fact that the money isn’t the government’s; it’s the individual taxpayer’s. It’s not a re-election trick. It’s Paul’s way of trying to work within the system to slowly erode the income tax.