How About a $15,000 Tax Credit For All Buyers, Even Millionaires

(MoneyWatch)  The housing recovery is in danger of failing, taking with it the economy. What do you do? Senator Johnny Isakson (R-Georgia) has the solution: A bigger tax credit.

The Gentleman from Georgia introduced legislation yesterday that would dramatically expand the $8,000 first-time buyer federal tax credit program:

• The bill nearly doubles the first-time buyer tax credit to $15,000 (which is the amount the National Association of Realtors, Mortgage Bankers Association, National Association of Home Builders and other housing industry stalwarts wanted in the first place);
• But wait - the bill eliminates the requirement that you have to be a first-time buyer (or not owned a home in the past three years) and allow everyone who buys real estate to qualify;
• The bill eliminates the income requirements. Even millionaires can qualify for a tax credit under Sen. Isakson's plan;
• Want to buy a multi-family unit? As long as you're going to live in one of the units, you can buy a multi-family building that would offer income opportunities;
• Can't close by December 15th? No problem. The bill proposes extending the deadline by which you can take advantage of this extremely generous tax credit to one year from the date the legislation is signed into law. In other words, you'd be able to get a tax credit well into 2010;
• The bill would allow taxpayers to amend their 2009 tax return (due on April 15, 2010) for house purchases made in 2010, so wouldn't have to wait until you file your 2010 return in 2011 to collect your $15,000;

Sen. Isakson has some powerful co-signers for his legislation, including Senators Lamar Alexander, R-Tenn., Jim Bunning, R-Ky., Saxby Chambliss, R-Ga., Chris Dodd, D-Conn., John Ensign, R-Nev., Joe Lieberman, ID-Conn., Lisa Murkowski, R-Alaska, James Risch, R-Idaho, and David Vitter, R-La.

In addition, according to the Senator's press release issued yesterday, the National Association of Realtors and the Housing Working Group of Business Roundtable today endorsed Isakson's efforts to expand the current homebuyer tax credit as part of recommendations to help return stability and growth to the U.S. housing market.

If the proposal sounds familiar, that's because we've been this way before. But can Sen. Isakson scare White House economists enough to make it happen this time?

Read More:

• Can Sen. Johnny Isakson Save The $8,000 Tax Credit?
• Is the $8,000 First-Time Home Buyer Tax Credit Enough to Save the Housing Market?
• Mortgage Bankers Association supports Sen. Isakson's $15,000 tax credit legislation