Bakersfield needs jobs, and tax credits will help create them
Bakersfield, along with the rest of California and the nation, needs viable economic stimulus. Creating jobs is the proven way to build a stable, prosperous economy.
Gov. Arnold Schwarzenegger recently visited Towery Homes to spotlight his proposed extension and expansion of the $10,000 homebuyer tax credit. The legislative bills approving the credit would encourage home sales on a first-come, first served basis through the $10,000 tax credit.
Towery Homes built 64 new homes in our community last year as a result of this tax initiative. Each new home built creates more than $300,000 in economic activity, $16,000 in state tax revenues and $3,000 in local government revenues.
The sale of homes sparks a chain reaction in the jobs market. Home builders file for permits and subcontractors hire the people necessary for construction.
The governor's proposal would extend and expand the $10,000 homebuyer tax credit to include the purchase of existing homes, in addition to new residences for first-time home buyer. The Franchise Tax Board would extend the credit to buyers who purchase homes until the $200 million mark has been reached.
Two-hundred million dollars in tax credits equates to 20,000 home purchases by first-time buyers. That is a stimulus package that will create jobs. Jobs are the answer. Jobs will lead California and our country out of this recession.
I support passage of this credit, and implore our lawmakers to pass Senate Bill 2x8 and Assembly Bill 34x8.
HARVEY L. HALL
Mayor, City of Bakersfield
