By Rachel Lippmann
St. Louis – Missouri Senator Claire McCaskill says she won't support the efforts of fellow Democrats to extend a tax credit for first-time homebuyers.
The $8000 credit, approved as part of the federal stimulus package in February, is scheduled to expire November 30th. It's cost the government about $10 billion so far.
The government has done everything it can to help middle-class families weather the recession, McCaskill said. She called further stimulus a "mistake."
"I think we've got to pivot, and begin looking very carefully at how we're spending money, because the markets also, in our financial sector and our economy will react very negatively if we don't start showing some discipline about the deficits, because that is just as dangerous," she said.
St. Louis Association of Realtors president Carole Baras said she shares McCaskill's concern about growing deficits, and said government spending needs to slow down - just not right now.
"Home sales in September were up over last year," Baras said. "I just don't know that we've actually seen a full impact as yet, and maybe extending this for another three, four months may help keep this resurgence going."
Baras says she'd also like to see the credit offered to all homebuyers, not just first-time purchasers.