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IRS: LENDER OF FIRST RESORT

August 18, 2008

Professor Maule has been reviewing the stupid tax provisions of the recently-enacated housing bill. His current post addresses the new homebuyer credit that has to be paid back over 15 years:

If the taxpayer would not have purchased the house but for the credit, isn't the Congress putting the United States Treasury into the same position as many sub-prime lenders put themselves when they made it possible for someone to acquire a home who wasn't financially ready to do so? If the banks making the bad loans are bailed out by the United States, who bails out the United States?

The answer: you and I, dear fellow taxpayer.

 • 2008 Housing Assistance Tax Act       Bookmark: del.icio.us • Digg • reddit