Possible Change to Tax Credit

Description

Lawmakers are working to phase out the $8,000 tax credit for first-time home buyers. Plus: Decline in land-line phones hurts Verizon.

Transcript
Lawmakers are negotiating to extend and gradually reduce an $8,000.00 tax credit for first time home buyers. They are under pressure from real estate agents, mortgage brokers and home builders to extend that credit before it expires November 30th. The tax credits together with low mortgage rates have given a big boost to home sales. Wall Street did not like the news that lawmakers are working to face out the tax credit for home buyers, stocks reversed to an early rally and finished in the red. The Dow Industrial sunk 104 points while the NASDAQ Composite fell back more than 12. Verizon says it added more than a million cell phone customers this summer but profits still sunk almost 30 percent that is because more customers and businesses are giving up landlines. Like many phone companies, Verizon is struggling with customers eliminating hardwired service which is still a vital part of its business. And Disney is offering refunds to millions of parents who bought its popular baby Einstein educational DVDs. Various studies of question whether they provide any benefits and some have concluded they may actually harm a child’s development. After being threatened with legal action, Disney is offering refunds for up to four baby Einstein videos bought between 2004 and now. For more money headlines, just log on to CBS moneywatch.com. In New York, I am Alexis Christoforous.
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