FIRST TIME BUYER TAKE NOTE POTENTIALLY

Harper promises tax break for first-time home-buyers
BRIAN LAGHI
Globe and Mail Update and Canadian Press
September 16, 2008

KITCHENER, Ont. — A re-elected Harper government would offer first-time home-buyers a tax break worth up to $750 to help them defray costs associated with closing the deal.
The Conservative leader made the announcement Tuesday in Kitchener, where his government is hoping to make inroads in opposition-held ridings to help build a majority come election day, Oct. 14th.
It was the second modest spending promise during a week in which the economic concerns – both domestic and international – are beginning to dominate the campaign.
Mr. Harper's plan would offer a tax credit of up to $5,000 in reducing tax payable, and would go towards helping defray the closing costs on the purchase of a new home. Lowest-income Canadians would be eligible for the maximum amount, while buyers in higher income brackets would get less, Conservative officials said.
Conservative Leader Stephen Harper delivers remarks during a news conference at a housing project Tuesday. (The Canadian Press)
"Our plan is simple, modest and practical," Mr. Harper said. "It's a tax break for first-time home-buyers, and a boost for the construction industry.
Expenses like home inspection fees, land registration fees, transfer taxes, legal fees mortgage loan insurance premiums would all likely be covered, according to the Conservatives.
Approximately 300,000 Canadians purchased new homes in 2007. Tory officials estimated the program would cost approximately $200-million per year.
Southern Ontario – particularly the southwestern portion where Mr. Harper is campaigning today – is one of the lynchpins in the Tory effort to win a majority. The riding is currently held by Karen Redman, who won the riding over the local Conservative by 11 percentage points.
Mr. Harper's early morning news conference didn't go off with the usual near-military precision.
“Hey, Harper! Come on out and face us!” yelled a man into a scratchy megaphone. “Don't worry about it, Harper! You'll be on the unemployment line soon enough!”
Dave Leitch, a 12-year worker at General Motors supplier Kitchener Frame Ltd., will be out of a job Friday — the day his son turns seven months old.
His taunts and those of a small group of other flag-waving Canadian Auto Workers members was a noisy sideshow to Harper's tightly choreographed election event — an offer to give first-time home-buyers a tax credit worth up to $750 per family.
Mr. Leitch, who turned 40 last week, was fuming as he asked reporters whether Mr. Harper will give him a tax cut if he has to sell his house.
Mr. Harper gamely carried on, at first ignoring the din, until a reporter asked him directly about Ontario's struggling manufacturing sector and the workers directly affected.
“I think they're the same protesters we get in every election,” he said.
“But look, as you know, this government has been taking determined action to help the sectors that have had some difficulty. We announced the billion-dollar Community Development Program just before the last budget. That was specifically targeting forestry and other ... single-industry communities that have been hit.”
Mr. Leitch said well-paid manufacturing jobs are being lost to Ottawa's failure to stem the tide of imported cars and other products. Guys like him wind up working at Tim Hortons, he said.
Mr. Harper belatedly said he feels for those who've lost their jobs, but said government can't “throw money” at outmoded industries. Instead, the Conservatives have invested in new technologies and training that spearhead the future, he said.