SB 105-11: TMTH Act (Passed)

[Bleach Blonde Bad Built Butch Bodies for Biden]

Thrusting More ATlasians Into Homeownership Act (TMTH Act)

Section 1 - Eligibility
1. Any individual in Atlasia may open an account with a financial institution and designate the account as a first-time home buyer savings account.
2. This account shall be used to cover eligible expenses for the purchase or construction of a primary residence located within Atlasia.
3. The designated beneficiary must be a first-time homeowner who has not been the primary owner of a residence previously.

Section 2 - Tax Benefit
1. The following limits shall apply:
a. The maximum contribution to an account in any tax year shall be $3,000 for an individual and $6,000 for a married couple filing a joint return.
b. the maximum amount of all contributions into an account in all tax years shall be $24,000 for an individual and $48,000 for a married couple filing a joint return.
c. the maximum total amount in an account shall be $50,000.
2. Individuals or married couples may claim a tax deduction for the total amount each year. The money may remain in the account for an unlimited duration.
3. Should the individual choose not to apply the funds of this account towards the purchase or construction of a home, the current income tax rate shall be applied to the account and a 10% penalty.

Section 3 - Implementation
1. The act shall go into effect beginning with the 2023 fiscal year.

Sponsors: Weatherboy and Scott

The gentleman from South Carolina is recognized.

(also, if I may, I would like to request cosponsorship)

[Bleach Blonde Bad Built Butch Bodies for Biden]

Senators have 24 hours to object to my cosponsorship.

So this is a bill I had the pleasure working with Senator Weatherboy on prior to its introduction. Essentially, this bill would create what can be aptly compared to Health Savings Accounts, except that the tax incentives will apply solely to first-time homeowners. I believe that homeownership (and frankly, more personal ownership of property in general, as opposed to the never-ending rent-and-borrow culture that has burdened so many young people with tremendous debt) is something absolutely worth encouraging and incentivizing. This program will provide long-term investment opportunities for millions of individuals and families, at a fraction of the cost for first-time buyers.

[Bleach Blonde Bad Built Butch Bodies for Biden]

Why is the cap on the size of the account so low?

This is WB's (and Tmth's) baby, but I for one am not opposed to raising it.

[Bleach Blonde Bad Built Butch Bodies for Biden]

Do we want to set a fixed cap or index it to housing prices?

[Bleach Blonde Bad Built Butch Bodies for Biden]

We also need to keep in mind that, even without accounting for market fluctuations, obviously the tax incentive is going to give people more buying power in cities with lower costs of living, like Oklahoma City, than high-COL cities like New York or Los Angeles. So a county-by-county index might be something to consider as well. That $3K or $6K is going to help everyone regardless, but once we start getting into the more expensive places (which are mostly the ones that have more job opportunities and therefore draw more people in) the benefits have a progressively smaller impact.

If we have run into problems codifying this all into the bill, then I think that a fixed rate of $10,000 for individuals and $20,000 for couples would be a fair route. Or perhaps something like $12,500 for individuals and $25,000 for couples.

[Bleach Blonde Bad Built Butch Bodies for Biden]

Also, hearing no objection, I am recognized as cosponsor.

[Bleach Blonde Bad Built Butch Bodies for Biden]

We also need to keep in mind that, even without accounting for market fluctuations, obviously the tax incentive is going to give people more buying power in cities with lower costs of living, like Oklahoma City, than high-COL cities like New York or Los Angeles. So a county-by-county index might be something to consider as well. That $3K or $6K is going to help everyone regardless, but once we start getting into the more expensive places (which are mostly the ones that have more job opportunities and therefore draw more people in) the benefits have a progressively smaller impact.

If we have run into problems codifying this all into the bill, then I think that a fixed rate of $10,000 for individuals and $20,000 for couples would be a fair route. Or perhaps something like $12,500 for individuals and $25,000 for couples.

How would we go about a county-by-county index? I originally thought maybe having just a simple function that scales the COL and potential benefits but that could lead to a similar situation as before where the COL decreases and may lock people out of benefits they thought they had.

I get what you're saying and I agree, it's just hard to find a way to make this work near-perfectly.

Yeah, the problem is likely that we would need to hand those decisions to the bureaucracy, because obviously we can't set a fixed rate for every county in the nation.

But that would also lead to budget problems.

[Bleach Blonde Bad Built Butch Bodies for Biden]

We also need to keep in mind that, even without accounting for market fluctuations, obviously the tax incentive is going to give people more buying power in cities with lower costs of living, like Oklahoma City, than high-COL cities like New York or Los Angeles. So a county-by-county index might be something to consider as well. That $3K or $6K is going to help everyone regardless, but once we start getting into the more expensive places (which are mostly the ones that have more job opportunities and therefore draw more people in) the benefits have a progressively smaller impact.

If we have run into problems codifying this all into the bill, then I think that a fixed rate of $10,000 for individuals and $20,000 for couples would be a fair route. Or perhaps something like $12,500 for individuals and $25,000 for couples.

How would we go about a county-by-county index? I originally thought maybe having just a simple function that scales the COL and potential benefits but that could lead to a similar situation as before where the COL decreases and may lock people out of benefits they thought they had.

I get what you're saying and I agree, it's just hard to find a way to make this work near-perfectly.

Yeah, the problem is likely that we would need to hand those decisions to the bureaucracy, because obviously we can't set a fixed rate for every county in the nation.

But that would also lead to budget problems.

Sometimes you just have to say a certain level of complexity is beyond the practical realities of the game and just take some things for granted.

So with this in mind, would the author prefer a fixed rate for all counties or should we leave those decisions to the 'Deep State'?

[Bleach Blonde Bad Built Butch Bodies for Biden]

I think it may be simpler to just do flat rates. I'm still open to scott's idea though.

Thrusting More ATlasians Into Homeownership Act (TMTH Act)

Section 1 - Eligibility
1. Any individual in Atlasia may open an account with a financial institution and designate the account as a first-time home buyer savings account.
2. This account shall be used to cover eligible expenses for the purchase or construction of a primary residence located within Atlasia.
3. The designated beneficiary must be a first-time homeowner who has not been the primary owner of a residence previously.

Section 2 - Tax Benefit
1. The following limits shall apply:
a. The maximum contribution to an account in any tax year shall be $3,000 $12,500 for an individual and $6,000 $25,000 for a married couple filing a joint return.
b. the maximum amount of all contributions into an account in all tax years shall be $24,000 $96,000for an individual and $48,000 $192,000 for a married couple filing a joint return.
c. the maximum total amount in an account shall be $50,000 $200,000.
2. Individuals or married couples may claim a tax deduction for the total amount each year. The money may remain in the account for an unlimited duration.
3. Should the individual choose not to apply the funds of this account towards the purchase or construction of a home, the current income tax rate shall be applied to the account and a 10% penalty.

Section 3 - Implementation
1. The act shall go into effect beginning with the 2023 fiscal year.

I believe this works well still, correct?

If indexes or county benefits are too complex to calculate or make fair for people, this seems reasonable.

[Bleach Blonde Bad Built Butch Bodies for Biden]

I am formally proposing Senator Weatherboy's changes as an amendment, and as co-sponsor I deem the amendment friendly. Senators have 24 hours to object.

[Bleach Blonde Bad Built Butch Bodies for Biden]

Hearing no objection, the amendment is adopted.

I'm not sure what else there is to debate, unless someone thinks the benefits are too generous. 72 more hours for comments, questions, and amendments.

[Bleach Blonde Bad Built Butch Bodies for Biden]

A final vote is now open. Senators, please vote Aye, Nay, or Abstain.

Thrusting More ATlasians Into Homeownership Act (TMTH Act)

Section 1 - Eligibility
1. Any individual in Atlasia may open an account with a financial institution and designate the account as a first-time home buyer savings account.
2. This account shall be used to cover eligible expenses for the purchase or construction of a primary residence located within Atlasia.
3. The designated beneficiary must be a first-time homeowner who has not been the primary owner of a residence previously.

Section 2 - Tax Benefit
1. The following limits shall apply:
a. The maximum contribution to an account in any tax year shall be $12,500 for an individual and $25,000 for a married couple filing a joint return.
b. the maximum amount of all contributions into an account in all tax years shall be $96,000 for an individual and $48,000 $192,000 for a married couple filing a joint return.
c. the maximum total amount in an account shall be $200,000.
2. Individuals or married couples may claim a tax deduction for the total amount each year. The money may remain in the account for an unlimited duration.
3. Should the individual choose not to apply the funds of this account towards the purchase or construction of a home, the current income tax rate shall be applied to the account and a 10% penalty.

Section 3 - Implementation
1. The act shall go into effect beginning with the 2023 fiscal year.

[Bleach Blonde Bad Built Butch Bodies for Biden]

Aye

[Bleach Blonde Bad Built Butch Bodies for Biden]

The bill currently has enough votes to pass. Senators have until tomorrow at 10:17 PM EST to change their vote.

After this vote is complete, I'm in favor of discontinuing final votes for bills in the lame-duck session. The President is slow to sign bills and everyone is thinking about our transitory period. I wish to vacate my seat as soon as the vote is finished.

[Bleach Blonde Bad Built Butch Bodies for Biden]

With nine vote votes in favor, zero opposed, one abstention, and eight members not voting, the bill is passed.

Vote on the TMTH Act:

Aye (9): Scott, Western Democrat, Weatherboy, Kuumo, North Carolina Yankee, Spark, DeadPrez, discovolante, Joseph Cao
No (0):
Abstain (1): AGA

Didn't vote ( 8 ): FalteirnArc, KoopaDaQuick, Muad'dib, OBD, Old School Republican, Pericles, S019, tack50

[Bleach Blonde Bad Built Butch Bodies for Biden]

Thrusting More ATlasians Into Homeownership Act (TMTH Act)

Section 1 - Eligibility
1. Any individual in Atlasia may open an account with a financial institution and designate the account as a first-time home buyer savings account.
2. This account shall be used to cover eligible expenses for the purchase or construction of a primary residence located within Atlasia.
3. The designated beneficiary must be a first-time homeowner who has not been the primary owner of a residence previously.

Section 2 - Tax Benefit
1. The following limits shall apply:
a. The maximum contribution to an account in any tax year shall be $12,500 for an individual and $25,000 for a married couple filing a joint return.
b. the maximum amount of all contributions into an account in all tax years shall be $96,000 for an individual and $48,000 $192,000 for a married couple filing a joint return.
c. the maximum total amount in an account shall be $200,000.
2. Individuals or married couples may claim a tax deduction for the total amount each year. The money may remain in the account for an unlimited duration.
3. Should the individual choose not to apply the funds of this account towards the purchase or construction of a home, the current income tax rate shall be applied to the account and a 10% penalty.

Section 3 - Implementation
1. The act shall go into effect beginning with the 2023 fiscal year.

Passed 9-0-1-8 in the Atlasian Senate assembled,

Scott, President pro tempore