In this week's Watcher, we write about how the political landscape for a fiscal stimulus package is shaping up. Essentially, everyone agrees there needs to be some sort of fiscal policy legislation called "a stimulus package," but that's where the agreement stops. At issue is the size and what elements should be included in the package. We get into these issues in the article, but here I wanted to flag what I think will be typical of the ensuing debate. House Republicans are also calling for purchasers of homes that are not primary residences to be entitled to the same capital gains exclusion as owners who sell their primary residences. Currently, a single homeowner can exclude $250,000 of capital gains on a sale, while couples can exclude $500,000. The proposal would only apply to people who bought second or third properties over the next 18 months and held their properties for at least five years. "This could help take foreclosed properties off the market, raising home values," said House minority leader John Boehner, R-Ohio. This is just crazy talk. Not only is this sort of tax break aimed at those wealthy enough to own second (and third!) homes, but it will do next to nothing to stimulate the economy. Boehner rightfully rails against "pork-barrel spending masquerading as 'stimulus'," yet this is exactly the kind of non-stimulative giveaway that he abhors. Hopefully, when Congress reconvenes in November, this sort of nonsense will be ignored by legislators in favor of passing an economically-sound package that delivers aid to those who need it and those most likely to spend it. Image by Flicker user Usonian used under a Create Commons license.