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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (247029)	8/22/2005 7:11:00 PM
From: tejek	Respond to of 1571828

RE:"Of course the treasury makes up for it with the inflated housing prices and the funny money being pumped into the economy thanks to homwowners cashing in" Only marginally and indirectly. If someone pockets the $500k and sticks it in a savings account at 3% or a stock or another house...the treasury virtually gets nada. True, the treasury gets nothing, but its good for the economy by encouraging investment, and that, in turn, helps the US treasury.

To: Jim McMannis who wrote (247029)	8/22/2005 7:38:43 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1571828

Jim, Only marginally and indirectly. If someone pockets the $500k and sticks it in a savings account at 3% or a stock or another house...the treasury virtually gets nada. Not sure about "marginally," since much of this current economy is indeed pumped up with home equity. By the way, no surprise that most of the job growth in the OC were in two areas: lending and realtors. Plus there's the Prop. 13 effect. Every time a home changes ownership, the state gets to revalue the home at the higher price for property tax calculations. So at least for the state of California, the treasury gets something. Tenchusatsu