Alternatives to tax credits

Re: 'Homebuyer tax credit back in play?' (Aug. 30)

Dear Editor:

Please, Washington, stop trying to micromanage one very delicate part of the national economy with subsidies and gimmicks.

Artificially stimulating practically anything always results in a "hangover" when the artificial stimulus is withdrawn. Just think about how witty and charming we all feel after two martinis.

So it can be with well-meaning stimuli, too. However, is it fundamentally fair to subsidize one class of consumer and not another?

Wouldn't we be better off if government and business had a cohesive plan for how to make purchasing a home easier; for example, getting banks to make loans to those deserving instead of being afraid to do so?

Wouldn't it be better to make universal admission to homeownership a reality, based only on one's creditworthiness and possession of, say, a 5 percent downpayment?

Wouldn't it be better to establish real penalties for falsifying applications and for loan agents processing loans that they know are fraudulent in application?

Other brains more powerful than mine can undoubtedly opine on this. Clearly, however, it's more than a one-shot solution.

Tax credits are fine, but someone must pay for them. Folks, that someone is us.

Mike Parker
Blackwater Consulting
Newport Beach, Calif.

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