Benefits of Tax-Credit Extension

" Breaking -- you're looking at live pictures -- the House of Representatives they have just approved. Of new legislation to extend and expand that homebuyer tax credit you know the 8000 dollar tax credit and unemployment benefits are going to be extended as well -- the Senate the United States senate unanimously 98 to nothing past. Their version last night joining me now. From wash -- one of the key senators behind the measure Georgia Republican. Johnny Isaacson. Senator thank you for coming at first of all how does that house bill differ from the one you guys are screwed up last night if at all. I found my mistake in the house voted do agreed in the Senate substitute to the house bill so. They basically they agreed to exactly what we -- afternoon exactly the same now Ike as I understand who the one thing that intrigued me about the bill would your bill. Was it had -- revision. To stop -- phase out that TARP program. But wasn't that. In the end of pulled from the bill. That's correct it was what what happened why why re unable to keep it in. Well as the legislative process there you know it there's give and take all the way through and we. We knew we had three things we've felt like we had to have one was the extension of unemployment insurance compensation. One was the net operating loss carry back. And then and then and most importantly to me my legislation on the first time home buyer credit and the move up our credit which was all included in the -- legislation all right well let's get let's get right to some of the criticism of if you don't mind here that we had this incredible. Inspector general's report of what went wrong with the tax credit the first time. Hundreds of millions of dollars potentially and fraudulent claims. -- 74000. Filers claiming a total of 500 million credits evidence shows that they weren't first time buyers. The credit has been claimed by 500 people under the age of eighteen including a four year old. Who tried to get it. And at least 53 cases of IRS employees. Filing illegal or inappropriate claims -- when something screws up this much you don't go ahead and extended. You don't double -- you pull it. Well it you first of all the legislation that I did -- just today included everything the IG. And the IRS task -- to ensure they had compliance secondly some of the fraud that you're talking about was against the law anyway. And the IRS lawyers are known in the first place and never let it happen. But we gave in this legislation IRS every single request they made. To ensure there would be no fraud. Yeah but you know there were assurances in the last what I mean appointee as you make this much money available. In this form and you're gonna get fraud. You know there are good people on our country -- vast majority and there's some bad people the law can't keep a bad person doing a bad thing. But we got the best enforcement agency in the world the Internal Revenue Service who have all the tools in the world to enforce it. They will ultimately be caught and some people 74000. Is more than some people senator. Look I don't want arguing the I did IRS has everything you need to do without the facts matter. I'm not understand that I put out the facts to. IRS asked for these two provisions we gave -- those provisions I regret that people would trying to cheat the system. But if we're going to help the American economy come back. If we're going to restore some sense some semblance and resolved for the housing market we've got to address the housing problem in this country in the tax credit does that. And it does in the right way but senator I'm just saying that when some thing is this. -- problematic. To put it mildly when something has this much fraud attached to a me 500 million dollars in fraudulent claims it's huge 74000. Individuals is a very large number instead of shoving another version ahead even if their provisions to prevent fraud shouldn't we sit back and say wait a minute something is wrong here we're sending out. Perverse incentives. With -- all due respect -- we went to the IRS and asked them what they needed to prevent fraud and an extension of the credit. And everything they -- force included new legislation I think United States did exactly the responsible thing. To act swiftly and decisively and give them the tools they need to prevent it from happening again. But it didn't happen the first time. How can you how can you -- it's fantastic time. Because we gave them the tools they said they didn't get the first time so nobody can tell -- of okay go ahead I'm sorry to believe. -- I'll just say nobody anticipated. That that would be the fraud in the -- to begin with. When the fraud took place within two days of the IRS hearing we introduced into the legislation every single thing. By letter and -- point that the IRS asked for. That's responsible legislation senator you gotta watch Fox Business a little more because we were saying here that this thing is ripe for fraud before it was passed so. Some people were suggesting that this might lead to fraudulent claims. I never questioned -- hit back -- What you should do you should provide but the point is it that that you say that it this system now is is fraudulent proof or do you think that there will still be. Some room for the thrusters to come in. You know the IRS. Error rate of people violating the law on their own tax collections is obviously you're gonna have people trying to work the system. But this legislation has everything the IRS enforcement people asked for. To ensure that anybody who perpetrated fraud would be caught exposed in corrective. I took it from them not become -- myself now what about the other criticism of this program that what you're doing is is merely. Pushing ahead purchases that would have happened anyway and that once it stops immediately you're gonna have a drop off in sales which is what seems to have happened. Over the past couple of months. Well first of all you're exactly what you're trying to do is move forward sales -- problem we have in this country is. The market is putting off action houses are selling and they are stagnant. If you bring that forward you bring back first of all is better values second -- consumer confidence and the market will build on itself. So what some uses the criticism is precisely what you try to do. The key to this too is that this is the final credit. It ends April 30 contract date. Closing date by June 30 and will not come back again. It's the incentive the marketplace needs to restore some sense of equilibrium. And stabilize home values the United States both senator you're you're good sport I think if I was up under the question I just put you through I would've walked away long ago senator Johnny Isaacson thank you very much for being here. You're right --"