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Stimulated!

February 19, 2009

An apparently disgruntled reader comments on our post (two separate comments) explaining the new, improved first-time homebuyer credit:

I bought in 08, why do I have to pay it back.
I haven't taken the tax credit yet. What is the difference between you and I. The stimulis was written and signed for both of us . Please explain.

Why does he have to pay it back? Because it the tax law says so. Congress in it's minuscule wisdom decided to make the credit like an interest-free loan for 2008 buyers, but a gift for 2009 purchasers. It's just the way it is.

What's the difference between the commenter and me? The commenter gets a 15-year interest-free loan (which, I would bet, Congress will eventually forgive), while I just get to keep making my payments on the house I bought in 1994, with interest, with no cramdown for my lender, and no free money from the IRS, while folks who bought more house than they can afford get help to stay put in their McMansions from Uncle Sugar.

Or, troubled commenter, let me put it another way.

Tags: Marginal Revolution.stimulus.