Iowa’s first-time homebuyers savings account is the right approach

Recently, the Iowa House passed an Iowa First Time Homebuyers Savings Account bill.

The bill creates an Iowa income tax deduction of up to $3,000 per year for individuals and $6,000 per year for married couples for contributions to a first-time homebuyer savings account. Maximum deductions for an account are $30,000 for individuals and $60,000 for couples. The bill also provides that if a withdrawal is made for a purpose other than an eligible cost, an account holder would have to add all of the tax deductions they previously took back into their taxable income. What a great way to promote homeownership.

However, there are differing views in the Iowa House about who knows how to best spend your money. Some believe the money these homebuyers keep is not their money but potential money lost by state government. There is a different mind-set between those that think this way and myself. This money belongs to the homebuyer not the government, and they know better on how to spend their money.

We have a spending problem in this state and country, not a revenue problem.

Some said that we can't pass this deduction because we can't now 'adequately” fund education. When we buy a home what do we pay for? We buy things to furnish the home and buy things to maintain the home, and therefore we pay sales taxes. We also pay property taxes. Both of these help fund our schools. I would argue homeownership only helps our schools. If we can promote and help first time homebuyers be able to achieve one part of the American dream through a tax deduction, we should do it.

This is a good piece of legislation. It is frustrating that some in the legislature believe what you earn can better be spent by government.

Again, I only wish we could make it retroactive back to before my wife and I purchased our first home. Perhaps I should file an amendment.

' Quentin Stanerson (R-Center Point) represents House District 95. Comments: Quentin.Stanerson@legis.iowa.gov